Survey finds 60% of UAE tenants have negotiated rental decrease over last 12 months - Gulf Business
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Survey finds 60% of UAE tenants have negotiated rental decrease over last 12 months

Survey finds 60% of UAE tenants have negotiated rental decrease over last 12 months

The country’s property market is experiencing a slump linked to lower demand

The majority of tenants in the UAE have negotiated a rent decrease over the last year amid damp conditions in the real estate market, according to listings site Dubizzle.

The company’s November survey of 900 users currently renting property found 62 per cent had seen a decrease in their rent.

Of this group, 18 per cent said they received an annual rental decrease of more than 15 per cent, 7 per cent a 10-15 per cent decrease, 18 per cent a 5-10 per cent decrease and 19 per cent a decrease of less than 5 per cent.

“With the UAE real estate becoming more affordable, property-seekers and tenants have more bargaining power to ensure they are getting an accurate market price for their properties,” said Samer Abdin, general manager, dubizzle Property.

“When making the important decision about where to live, we encourage users to do their research to ensure they are getting a competitive rental agreement. As the UAE moves further in favour of tenants and, it is becoming a more competitive and attractive place to live.”

Dubizzle said more than a third of tenants (37 per cent) used online platforms to negotiate their decreases, while 19 per cent used the number of rental cheques and 14 per cent maintenance and chiller fees as tools for negotiation.

The findings come as the country’s property market continues to weather tough conditions linked to decreased demand and new supply entering the market.

Read: A cityscape in flux: The outlook for the UAE property market

Sales prices and rents declined in all the country’s main cities during the third quarter, according to property firm Asteco.

The UAE central bank said last week residential real estate prices in Dubai were down 7.4 per cent year-on-year and Abu Dhabi 6.1 per cent in the three months to September 30.

This was partly linked to lower employment growth of 0.4 per cent, its slowest rate in more than four years.

Read: Dubai property prices down 7.4% in Q3 as UAE job growth slows – central bank

The overall Dubizzle survey included 1,400 people, of which 53 per cent were in a one or two-bed property, 28 per cent a studio apartment, 15 per cent a three or four-bed and 3 per cent a five-bed.


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