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Old Oct 31st 2017, 8:01 am   #1
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Default Rental declines in Dubai - 20% in premier areas

Well, not quite but close enough. Dubai Marina has seen a 19% decline in rent in the past year, Downtown following at 18%.

Premium, affordable locations in Dubai post steepest declines in rent | GulfNews.com

How much are you overpaying?

How much more will the rents decline? Another 20% 10%? 5%?

Interestingly enough, Banlieue de Disco Gardens has seen the smallest decline, only 2%.
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Old Oct 31st 2017, 8:08 am   #2
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Default Re: Rental declines in Dubai - 20% in premier areas

It says my area has fallen 16%, someone needs to tell my landlord, they're (it's a local company) are trying to increase my rent - so, yet again I'm off to RERA - tomorrow actually.
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Old Oct 31st 2017, 8:32 am   #3
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Default Re: Rental declines in Dubai - 20% in premier areas

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Originally Posted by DXBtoDOH View Post
Well, not quite but close enough. Dubai Marina has seen a 19% decline in rent in the past year, Downtown following at 18%.

Premium, affordable locations in Dubai post steepest declines in rent | GulfNews.com

How much are you overpaying?

How much more will the rents decline? Another 20% 10%? 5%?

Interestingly enough, Banlieue de Disco Gardens has seen the smallest decline, only 2%.

And in reality??????

These stories are always popping up, but I bet a quid if you went to your landlord and said ayup Ahmed how about a cut in my rent you would stand about as much chance as an Israeli getting made a citizen of the UAE
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Old Oct 31st 2017, 8:32 am   #4
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Default Re: Rental declines in Dubai - 20% in premier areas

If you're paying 100k and can find a similar place for say 85k, by the time you've dropped deposit, agent fees, DEWA deposit/fees, Du/Etisalat deposit/fees, removal men and so forth, you'll actually be worse off in the first year.

What if year two they have dropped further?

Best thing is negotiate with your current Landlord. Explaining clearly and simply that you can move out and leave him rent-less for probably 1-3 months is worse than him lowering the rent by a fair amount.
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Old Oct 31st 2017, 8:37 am   #5
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Default Re: Rental declines in Dubai - 20% in premier areas

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Originally Posted by Scamp View Post
If you're paying 100k and can find a similar place for say 85k, by the time you've dropped deposit, agent fees, DEWA deposit/fees, Du/Etisalat deposit/fees, removal men and so forth, you'll actually be worse off in the first year.

What if year two they have dropped further?

Best thing is negotiate with your current Landlord. Explaining clearly and simply that you can move out and leave him rent-less for probably 1-3 months is worse than him lowering the rent by a fair amount.
Therein lies the rub, I was a couple of years ago looking to rent 12 apartments for our staff, tried to negotiate with one local landlord and he bluntly told me he would rather leave them empty (and earn no money)...how can you negotiate with that attitude???
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Old Oct 31st 2017, 8:38 am   #6
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Default Re: Rental declines in Dubai - 20% in premier areas

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Originally Posted by Dubaiexile View Post
And in reality??????

These stories are always popping up, but I bet a quid if you went to your landlord and said ayup Ahmed how about a cut in my rent you would stand about as much chance as an Israeli getting made a citizen of the UAE
Then simply move. Based on 4-5 calls, the prices on Dubizzle and Propertyfinder can be negotiated at least 10% down even before you've viewed the place.

I really do think its becoming a renters market again - thank goodness.

My lease is not due until next August, but I've already told my landlord (lives in the same building and I know him well) that I'll be looking for a 15-20% reduction or i'm off. He's already considering it as he knows how long apartments stay vacant on the palm once the tenant has left. What has exacerbated the issue for owners is that the tourists who used to fill buildings like mine through AirBnB are not coming either and those units are now hitting the long term market again as well.
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Old Oct 31st 2017, 8:39 am   #7
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Default Re: Rental declines in Dubai - 20% in premier areas

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Originally Posted by Scamp View Post
If you're paying 100k and can find a similar place for say 85k, by the time you've dropped deposit, agent fees, DEWA deposit/fees, Du/Etisalat deposit/fees, removal men and so forth, you'll actually be worse off in the first year.

What if year two they have dropped further?

Best thing is negotiate with your current Landlord. Explaining clearly and simply that you can move out and leave him rent-less for probably 1-3 months is worse than him lowering the rent by a fair amount.
I always got my deposits back. All of them. So moving from 100k to 85k is worth it. And of course in the second year you've saved a lot more. It pays to keep an eye on the future and not be consumed by today's expenses.

Negotiating with LL is best, of course. But many just won't listen or even care
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Old Oct 31st 2017, 8:41 am   #8
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Default Re: Rental declines in Dubai - 20% in premier areas

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Therein lies the rub, I was a couple of years ago looking to rent 12 apartments for our staff, tried to negotiate with one local landlord and he bluntly told me he would rather leave them empty (and earn no money)...how can you negotiate with that attitude???
Some don't care, that's their choice....but lots do. Our landlord has said we can discuss a drop next year. I looked around and they're lower but the real drop is in the shitter apartments, without the view on a low floor. The high floors with a great view like ours are still similar prices.
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Old Oct 31st 2017, 10:30 am   #9
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Default Re: Rental declines in Dubai - 20% in premier areas

Just about to renew mine... Waiting on confirmation of a rent decrease... currently paying 133k, renewal expectation is 128k subject to Mr. Abdullah al Great agreeing. Notional reduction only but I can't be moving again this year. Market price is probably 120k.
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Old Oct 31st 2017, 11:05 am   #10
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Default Re: Rental declines in Dubai - 20% in premier areas

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What has exacerbated the issue for owners is that the tourists who used to fill buildings like mine through AirBnB are not coming either and those units are now hitting the long term market again as well.
Why not?
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Old Oct 31st 2017, 12:04 pm   #11
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Default Re: Rental declines in Dubai - 20% in premier areas

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Why not?
I'm not directly involved with tourism but I understand that Euro and Russian Tourist numbers are well down. Maybe due to their downturned economies and the value of GBP/EUR vs USD? Maybe they've all just done Dubai and go somewhere else. I do know that the vast majority of AirBnB guests on Palm were from western europe and in my building we've not seen tourists for months.
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Old Oct 31st 2017, 12:07 pm   #12
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Default Re: Rental declines in Dubai - 20% in premier areas

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I'm not directly involved with tourism but I understand that Euro and Russian Tourist numbers are well down. Maybe due to their downturned economies and the value of GBP/EUR vs USD? Maybe they've all just done Dubai and go somewhere else. I do know that the vast majority of AirBnB guests on Palm were from western europe and in my building we've not seen tourists for months.
Keep the good news coming sheddy.

Can't help feeling that I'm seeing some tightening locally. I didn't feel it until now - maybe it's just my circle but I'm hearing more war stories now than before.

There is still a lot of money in this city though for the right people/ investments etc.
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Old Oct 31st 2017, 12:26 pm   #13
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Default Re: Rental declines in Dubai - 20% in premier areas

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Keep the good news coming sheddy.

Can't help feeling that I'm seeing some tightening locally. I didn't feel it until now - maybe it's just my circle but I'm hearing more war stories now than before.

There is still a lot of money in this city though for the right people/ investments etc.
I agree that theres still money around Milly, but I'm not sure its being spent /invested in the same places as before. We talked before and I don't think the population is decreasing or anything, its just the demographics and spending habits are changing. The once high spending (renting) ex-pats seem few and far between which maybe why we're not seeing the same rental drops in places like Disco Gardens. Go talk to a high end car dealer if you want war stories and bad news.
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Old Oct 31st 2017, 12:47 pm   #14
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Default Re: Rental declines in Dubai - 20% in premier areas

I think it's just that a lot of expat roles are disappearing.

The 45k flashy Expat with two kids doesn't exist anymore. They can't afford the lifestyle they used to have. There are of course plenty on that sort of money who do alright and live sensible lives....but don't forget: 45,000. Two kids = 8,000, Rent at 12,000, two cars at a conservative 5,000, DEWA etc bills and shit for the house at 3-4,000, food shops at 8,000 leaves 9,000 a month for children expenses, beer, cigs and whores.

It's a squeeze in the middle if you have kiddies I think.
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Old Oct 31st 2017, 1:18 pm   #15
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Default Re: Rental declines in Dubai - 20% in premier areas

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I think it's just that a lot of expat roles are disappearing.

The 45k flashy Expat with two kids doesn't exist anymore. They can't afford the lifestyle they used to have. There are of course plenty on that sort of money who do alright and live sensible lives....but don't forget: 45,000. Two kids = 8,000, Rent at 12,000, two cars at a conservative 5,000, DEWA etc bills and shit for the house at 3-4,000, food shops at 8,000 leaves 9,000 a month for children expenses, beer, cigs and whores.

It's a squeeze in the middle if you have kiddies I think.
oh, scampy. On your usual logic, after everything he has 9,000, almost 2 grand, of piss money. He wouldn't be able to do that in the UK.

45k was always the minimum for a family of four, don't think it got you flashy.
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