Budget conscious tenants have big impact on Dubai property market

Tenants on a budget made a big impact to Dubai’s property market during the third quarter of 2016. That’s according to the real estate consultancy firm Asteco’s latest review. Landlords felt the pressure in Q3 with many tenants looking to downgrade to smaller units or relocate to cheaper communities. Affordable communities like Dubai Sports City recorded the highest growth in rents over the year, averaging 13%. Locations like Business Bay recorded a 5% decline due to budget conscious tenants and new supply coming online. Villas in exclusive areas like Jumeirah and Umm Suqeim also felt the pinch with a decline of 19% and 12%. Continuing the positive trend, affordable housing in areas like Jumeirah Village Circle saw an increase in rates of around 2%.