Over 33% of UAE residents paying more rent than a year ago – survey

Nearly 37 per cent of residents are giving the same amount of rent as a year ago

Up to 33.1 per cent of UAE residents are paying more on house rent than they were a year ago, according to a new survey.

The Q1 survey by comparison site yallacompare however found that the percentage of residents paying more was down from 36.3 per cent in Q4 2018.

Meanwhile, 30 per cent of those surveyed in Q1 said they are paying less rent than a year ago, compared with 26 per cent in the previous quarter.

Nearly 37 per cent are giving the same amount of rent as a year ago.

“It’s not surprising that more and more people are paying lower rents than a year ago,” said Jonathan Rawling, CFO, yallacompare.

“The proportion paying more, however, is still high and residents clearly need to do more to secure lower rents.”

The survey, which is conducted every quarter and polled more than 1,000 UAE residents, also found that residents generally prefer to stay where they are.

While 63 per cent of the respondents said they were living in the same home as compared to a year ago in Q1 – up from 61.3 per cent in Q4 2018, asked if they plan to move in the next year, 70 per cent said no.

“We repeat our previous advice – that moving home, with all the associated costs, does not necessarily lead to a significant drop in rent,” said Rawling.

“Tenants are more likely to secure lower rates by negotiating with their existing landlord. This must be done three months before the lease expires, before the contract automatically renews on existing terms,” he added.

The UAE – and specifically Dubai – has seen a slump in its property market with prices and rents continuing to drop this year.

Experts predict that with supply exceeding demand, rates will only start to stabilise by next year.

Read: UAE real estate market sees ‘subdued’ performance in Q1