{"id":11436,"date":"2016-04-27T00:05:27","date_gmt":"2016-04-26T17:05:27","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=11436"},"modified":"2016-04-26T22:17:04","modified_gmt":"2016-04-26T15:17:04","slug":"dubai-rents-fall-fastest-in-prime-areas-as-jobs-market-weakens","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-rents-fall-fastest-in-prime-areas-as-jobs-market-weakens\/","title":{"rendered":"Dubai rents fall fastest in prime areas as jobs market weakens"},"content":{"rendered":"


\nDubai rents could fall by as much as 5 per cent this year, with the biggest drops in prime areas including Dubai Marina and Palm Jumeirah, according to Cluttons. The consultancy said that rents in prime areas are likely to fall by up to 7 per cent, driven by a decline in demand for luxury apartments. Overall, rents are expected to decline in the range of 3 to 5 per centRichard Paul, the head of residential valuations at Cluttons, said that average rents fell by 1.3 per cent over the quarter and are 3.5 per cent lower year-on-year.But high-end, one-bedroom apartments in Dubai Marina, Downtown Dubai, Palm Jumeirah and DIFC have dropped by almost 10 per cent year-on-year.”Weaker demand as job creation rates slow is fuelling the declines in the rental market, which has remained exceptionally resilient in the face of some very challenging local and macroeconomic conditions over the past 12 to 18 months,” said Mr Paul.Rents in more affordable areas such as Jumeirah Lakes Towers, Discovery Gardens and International City remained flat, however, as renters sought out cheaper space. Sale prices fell by 2.2 per cent in the first three months, the steepest quarterly drop for five years, said Cluttons. Prices were 4.4 per cent lower year-on-year, with the biggest price declines for high-end villas – The Lakes at Emirates Hills was the worst-performing area, reporting a year-on-year decline of 13.3 per cent, Cluttons said. Mr Paul said that job losses, particularly in senior banking roles and in the oil and gas sector, had led to more negative sentiment and weakened rental demand at the top end of the market. Although premium apartment sale prices have held up compared to villas, transactions have slowed and Mr Paul said that apartment prices in this segment could also begin to fall.Although its forecast of a 3 to 5 per cent rental decline is similar to that predicted by JLL last week, views on market sentiment differed. JLL said last week that it expected prices to bottom out over the summer and a recovery in the second half of the year, but Mr Paul said uncertainty over oil prices, which has a knock-on effect on banks’ liquidity, meant a recovery in the short term was unlikely. “As we move into the summer, we see the sentiment on oil prices not having a particularly favourable effect on the market and there will maybe be fewer buyers. We feel [sales prices] have got a little bit further to go. I don’t think we’re there quite yet.”The property portal Bayut reported a 3 per cent year-on-year decline in rents in Dubai during the first quarter of this year and a 6 per cent fall in sale prices. It said that demand for cheaper space in tertiary areas has created opportunities for investors, with lower prices and stable rents in areas such as Dubailand and Dubai Sports City pushing rental yields as high as 9 per cent.”Dubai’s suburbs are ideal for both new home buyers – who can still benefit from low prices – and investors, who can enjoy impressive rental yields,” it said.mfahy@thenational.aeFollow The National’s Business section on Twitter
\n
\nSource : thenational.ae
\nRead more…Dubai rents fall fastest in prime areas as jobs market weakens<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Dubai rents could fall by as much as 5 per cent this year, with the...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-11436","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-2Ys","jetpack-related-posts":[{"id":43955,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/falling-dubai-housing-rents-to-come-under-further-pressure-this-year\/","url_meta":{"origin":11436,"position":0},"title":"Falling Dubai housing rents to come under further pressure this year","date":"February 13, 2017","format":false,"excerpt":"\r Housing rents in Dubai fell during the final quarter of 2016 and look set to come under further pressure this year.According to property broker Asteco, average apartment rents in Dubai fell by 5 per cent in the final three months and ended the year an average of 6 per\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":23095,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-office-rents-remain-flat-as-companies-opt-to-stay-put\/","url_meta":{"origin":11436,"position":1},"title":"Dubai office rents remain flat as companies opt to stay put","date":"August 16, 2016","format":false,"excerpt":"\r Demand for office space in Dubai has fallen over the past six months in the wake of the oil price rout and the economic slowdown elsewhere in the Gulf that dampened the need for commercial space, Cluttons said in a report. The consultancy's bi-annual Office Market Bulletin found that\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":35212,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-property-prices-widely-expected-to-rise-in-2017\/","url_meta":{"origin":11436,"position":2},"title":"Dubai property prices widely expected to rise in 2017","date":"November 21, 2016","format":false,"excerpt":"\r Brokers and analysts are certain that Dubai residential house prices will rise next year but disagree over the speed of the property market's recovery. Two reports yesterday by JLL and dubizzle and by Core Savills are forecasting that Dubai's property market will recover much faster than the end of\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":35214,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-property-prices-to-rise-in-2017-but-how-quickly\/","url_meta":{"origin":11436,"position":3},"title":"Dubai property prices to rise in 2017, but how quickly?","date":"November 21, 2016","format":false,"excerpt":"\r Brokers and analysts are certain that Dubai residential house prices will rise next year but disagree over the speed of the property market's recovery. Two reports yesterday by JLL and dubizzle and by Core Savills are forecasting that Dubai's property market will recover much faster than the end of\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":35044,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/demand-for-dubai-luxury-property-dips-recovery-not-expected-until-2017-says-cluttons\/","url_meta":{"origin":11436,"position":4},"title":"Demand for Dubai luxury property dips; recovery not expected until 2017, says Cluttons","date":"November 20, 2016","format":false,"excerpt":"\r The market for luxury property in Dubai continues to weaken as the number of high-level jobs has declined, with prices for Burj Khalifa apartments 15 per cent lower year-on-year and prices at Palm Jumeirah falling by 12 per cent, according to Cluttons.The fall at the top end of the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14206,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-office-rents-face-summer-of-decline\/","url_meta":{"origin":11436,"position":5},"title":"Dubai office rents face summer of decline","date":"May 24, 2016","format":false,"excerpt":"\r Dubai's office market faces a \"challenging\" outlook, with further rental declines likely to come over the summer months after a period of relative stability, says the property consultant Cluttons. The company said that although rents held in some of Dubai's prime free zones, such as DIFC and Dubai Media\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/11436"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=11436"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/11436\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=11436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=11436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=11436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}