Landmark Advisory leasing guide: Plunge in Dubai rent continues

July saw the continuation of the ongoing plunge in residential property rents in Dubai, the blame of which goes to weaker demand and increased supply; however, improvement was noticed in some areas.

It has been found by the latest leasing guide from real estate consultants Landmark Advisory that areas where tenants are upgrading to bigger properties are the ones where rental rates are rising.

These include villas in Arabian Ranches, villas in Jumeirah Islands and also at the Greens. However, it won't be wrong to say that overall rent rates are falling, according to the July leasing guide.

"Rents fell at larger apartments as tenants moved out of shared accommodation into single properties or studios," expressed, Jesse Downs, Director of research at Landmark Advisory.

He added that it was too early to suggest rents are bottoming out, and that they are likely to drop further in the emirate. It has been estimated that there could be another 20 per cent fall in the property prices this year.

The report also suggests that relocations from Abu Dhabi and Sharjah were holding up rents in some areas, in spite of the weakened demand from job losses and expatriates returning home.