UAE: Majority of residents expect rents to stabilise or go up in 12 months

Dubai - The findings are a sharp turnaround from October last year, when only 31 per cent of those surveyed expected rents to stablise or rise.

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by

A Staff Reporter

Published: Sun 28 Feb 2021, 9:40 AM

The majority of UAE residents believe rents and property prices have almost bottomed out and will either stabilise or go up over the next 12 months, according to a new survey.

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The study, released by Peninsula Research, showed that 53 per cent residents expect prices and rents to be stable or to go up in the next one year, a sharp turnaround from October 2020, when only 31 per cent of respondents expected prices and rents to either stabilise or rise.

“UAE renters are less confident that they will win further rent concessions from their landlords when their current lease expires… Throughout the last 12 months, a majority of renters have considered the rent they pay to be fair or good value. With further rent declines during 2020, this proportion has now risen to 81 per cent of respondents,” said the Peninsula Research.

UAE homeowners are also bullish on their prospects, according to the survey. Only 27 per cent of respondents expect prices to continue to decline, with 30 per cent expecting price stability. The largest group, 43 per cent, expect prices to rise in the coming 12 months.

This marks a hugely significant improvement in sentiment. In Q1 and Q2 2020, the majority of homeowners expected price declines over the following 12 months.

At the end of Q3 last year, responses were split 50/50. The large positive skew is also clearly demonstrated in the contrast between Q4 and Q3 2020, said the survey.

waheedabbas@khaleejtimes.com

Photo: Wam
A Staff Reporter

Published: Sun 28 Feb 2021, 9:40 AM

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