Rents across Dubai forecast to fall further during 2019

Rents across Dubai are expected to see further softening in 2019, particularly in areas with handovers of long overdue new deliveries, according to a new report. Real estate consultancy ValuStrat said rental declines next year will be most common in located within the E311 corridor including projects such as Living Legends, Dubailand, The Villages, Dubai South, Damac Hills, Dubailand, Hayat Townhouses, Town Square, and Mudon Villas, Dubailand. The report also said that prime residential areas in Dubai, which saw relative resilience this year, may continue to see some improvement in 2019. It added that capital values for some high-yielding mid-affordable areas may experience downward pressures as a result of burgeoning supply, extending the prevailing buyer's market. ValuStrat said that by the end of 2019 the population of Dubai is expected to reach 3.4 million, and assuming all projects are delivered on time, the number of residential units will reach 600,000, office supply 9.5 million sq m and Dubai could have 138,000 hotel rooms and hotel apartments. The report said one of the key trends of the Dubai residential real estate market in 2018 was the reduction of off-plan launches when compared to the previous year.