Real Estate

More power to tenants – ValuStrat – Medium

This time last year there was much talk questioning the effect of implementing the 5 per cent value-added tax and excise tax on certain goods, which would cause rising inflation and impact spending power of Dubai’s residents. It is almost end of the year and we find that Dubai’s annual inflation rate stands at 2.2 per cent with marginal monthly changes. This low rate is caused by declining housing and utility expenses including rental expenses, which according to the Dubai Statistics Centre, retreated 3.6 per cent since last year.

Consultancy in Dubai ValuStrat’s third-quarter real estate review report shows that overall residential rents declined 20 per cent since 2016 and another 11 per cent since last year. In general, average annual rents for two-bedroom villas were Dh126,000, three-bedders at Dh177,000 and four-bedders villas at Dh255,000. Average annual rents for studio apartments were Dh51,000, onebedders at Dh74,000, twobedders at Dh105,000, and three-bedroom apartments at Dh149,000. To sweeten the deal, landlords wanting to retain tenants now offer free rental months, waive chiller

Read next: Dubai Q3 2018 Real Estate Research

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