Rents in some upmarket Dubai areas fall

As budget-conscious tenants look for cheaper alternatives or downgrade to smaller units to get better value for money, mid-to-high end residential segment continues to witness drop in rental rate while villa rates could come under further pressure on new supply, reports Khaleej Times, quoting market experts.

While apartments in Jumeirah Village Circle and Dubai Sports City saw rates increase by two per cent and three per cent, the mid to high end segment saw some downward movement, with Business Bay recording a five decline due to new supply being handed over and budget conscious tenants looking for alternatives, real estate consultancy Asteco said.

"Although rental rates have remained relatively stable this quarter we are seeing a definite shift to more affordable areas such as Jumeirah Village and Dubai Sports City where rents are cheaper and an increasing number of amenities are coming on line as communities reach critical mass," said John Stevens, Managing Director, Asteco.