Residential apartment rents are 3% down in the first quarter 2016 compared to first quarter of 2015. Normally comparison is done on a quarter-on-quarter report. Average rentals had increased 3% with apartment rental yields remaining at 6 %.
Studio apartment rents adjusted 5% with average yearly rents being Dh60,000. 1 and 2-bed apartments both adjusted 4% with average rents being Dh98,000 and Dh154,000 per annum, individually and The 3 and 4-bed categories corrected by 4% and 3%, respectively, fetching Dh210,000 and Dh321,000 pa.
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Almost 4,600 residential units were notified to be finished in the first quarter of 2016 and 10% of them came from projects held in 2015. A majority of these were placed in Dubailand, Jumeirah Village Circle, and Mohammed bin Rashid City.
The top 5 localities for renting apartments during the time were Bur Dubai, Business Bay, Dubai Marina, Jumeirah Lake Towers, and Downtown Dubai.
The report said Dubai’s real estate market sailed stable through the first quarter. Real estate developers carefully analyzing demand before supplying the market with new units for providing even distribution and movement of residents from the city centre to suburbs.
Property consultancy JLL listed nearly 2,200 units were added to the Dubai residential market in the first quarter 2016 alone with rents dropping during the time compared to fourth quarter 2015.
The first quarter 2016 report showed that rents for apartments were down by 3% quarter-on-quarter for apartments and 1% for villas. On the year-on-year data, the decline has been 5% for both the categories.
On the price front, the residential market was nearing the ‘bottom of its cycle, stating prices were down 10% year-on-year.