Rent declines are influenced by location and how well that location and the ambience/infrastructure it offers is in sync with tenant expectations, says one expert. While there's little doubt that property growth has slowed down, there's little consensus on whether rents have dipped equally across the emirate, says a Gulf News report.
Location plays a critical role in deciding rents and in places where supply is increasing steadily, landlords are unable to get away with sticking to irrational demands. However, perception also holds a place in how rents change.
According to Ryan Mahoney, CEO of Better Homes Real Estate, “there is [still] a lot of demand for the more established areas — Downtown and Dubai Marina — because the amenities tend to be better,” said Mahoney. “And while there is new supply coming (there), many of those aren’t being completed in 2015 … so, while there is moderate supply, rents may remain stable or even increase over the course of the year."
“Where there is a lot of supply in up-and-coming areas that don’t yet have the amenities, there may be some downward pressure on rents since there is less demand. But overall it’s unlikely there will be significant rental rate rises.”