With the effects of the global pandemic prevalent throughout the world, there has been a sense of uncertainty among people with regards to the real estate market in the UAE. Particularly, when it comes to Dubai property rental prices, it is speculated to fluctuate in the times to come, even after the effects of the COVID-19 are over. It is evident from the results of a recent survey conducted by ZoomProperty.com. For the question “Will rent prices in the UAE go up in the next 12 months?”, 69% of people voted for “no” while the rest i.e. 31% of participants believe that the rents will increase in the next 12 months.
Real estate experts at Zoom Property have keenly observed consumer behaviour and the conditions of the market. They have come up with potential reasons why people believe rent prices in the UAE are going to see a dip in the time to come. Have a look at them:
Dubai’s real estate stats of the last 12 months show that the property rental prices of apartments and villas had a major dip. While the apartments saw an overall decline of 14% in rental value, villas had a 10% fall in their rental price. Being a major city of the UAE, the rent price in Dubai impacts other cities as well. This is why people speculate the rent to stay on the lower side of the spectrum in the next 12 months.
Needless to say, COVID-19 impacted almost all businesses, making their employees to work from home, cost cutting and so on. Due to the current situation, the buying power was directly affected, making people to leave rental properties and shift to relatives or smaller capacity to save cost. Considering this behaviour change, owners of the rental apartments and properties have decided to reduce the rental prices to ease tenants and to retain them. Due to the businesses struggling to survive in the market and owners of the rental properties striving to retain tenants, a survey was conducted to know about the property rental prices situation and where it is leading. From the results it was found that, to fight with Covid 19 situation, probably the rental prices in Dubai will sustain in 2020 to facilitate tenants to stay with ease and the owners doesn’t have to bear much losses.
It makes sense why fewer people have voted for the affirmative. The sense of unrest and uncertainty caused by COVID-19 has influenced not only the real estate industry in Dubai but the economy on the whole. Having said that, the decrease in the price of properties for rent may prove to be a relief for some people.