Rents softening but still highest in the world

08.10.2014
Prime rents in Dubai continue to “outpace wage inflation,” which is raising concerns about “affordability”, leading some to consider buying instead of renting. Prime residential rents in Dubai rose by 2% in the second quarter 2014, taking the annual increase to 14.1% – topping the list of 17 global cities tracked by UK-based Knight Frank, Emirates 24/7 reported.
“Dubai holds the top spot this quarter, having recorded a 14.1% increase in prime rents in the year to June."
“The emirate leapfrogged Nairobi which had enjoyed four consecutive quarters at the top,” the real estate consultancy said.
However, it added that prime rents in Dubai continue to “outpace wage inflation,” which is raising concerns about “affordability”, leading some to consider buying instead of renting.
The 12-month rental growth in Nairobi more than halved from 25.8% in March to 9.9% in June, but Dubai’s step change was less stark, from 16.4% to 14.1% over the same time period.
Downtown Dubai, Tecom C and International Media Production Zone all witnessed rent declines of around three per cent, while in Jumeirah Lakes Towers, Business Bay, Palm Jumeirah, Motor City and Dubailand saw rents falling by two per cent.

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