Latest news with #RupertSimmonds
Gulf News
29-04-2025
- Business
- Gulf News
Dubai rent hikes: More tenants face second year of double-digit increases
Dubai: Rents easing in Dubai? Not for a significant number of residents, who now have to decide whether to renew leases after their landlords decided to raise rents in double-digit ranges. And here's the painful part for these tenants – this year's hike comes after they had already seen a double-digit increase at last year's renewal. The trend shows that a sizable number of landlords in Dubai are rushing to 'level up' their rents after the introduction of the real-time Rental Index by the Dubai Land Department in January. 'There is no rental correction going on in Dubai right now,' said a leasing agent. 'Landlords who are allowed to hike rents as per the data from the Rental Index are doing just that. 'There is no reason why they should hold back from doing so. It's up to the tenants to decide whether they should stay on or quit.' This does leave affected tenants with quick decisions to be made. Stay on and they have to comply with the second (or third) successive rate increase. Decide to vacate and search elsewhere opens up the possibility they might still have to pay the elevated rents that are prevailing across Dubai. At the same time, there have been indications of some 'softening' happening at some residential properties, which are essentially older buildings and whose landlords cannot raise rents under the star rating system of the updated Rental Index. Rupert Simmonds is the Director of Leasing at Betterhomes, and he reckons that there is a backdrop to tenants facing successive rent increases. 'It's likely that this is for tenants who have been in the same property, say, for the last 3-4 years,' said Simmonds. 'They would have been paying ongoing Covid-time rents – and because of the (previous) Rental Index, they probably were protected from today's rents. 'It's likely that now each opportunity a landlord gets to increase the rent, they are able to do so. Because the rental market has gone up a lot more over the last year.' That's just it. Landlords don't want to be caught out when Dubai rents actually start to stabilize at some point. Then, that rents' stabilizing will not be confined to a few areas or buildings, but will take place over a wider spread. But that's not the case now. Even with more residential buildings completed and ready for residents to move in. Whether they are the homeowners or tenants. 'About 40% of the units at out first freehold project in Liwan are expected to be placed in the rental market,' said Murtaza Moiz, Vice Chairman of Symbolic Developments and Speedex Group. ' The other 60% were acquired by end-users, and for us that means a balanced profile for the project and the Liwan area. 'Rental rates in Liwan range from Dh65,000-Dh70,000 for a one-bedroom and Dh100,000-Dh120,000 3-bedroom units. These figures represent strong rental yields, with Liwan poised for further growth supported by ongoing infrastructure enhancements.' Developers with projects completed or nearing completion in other happening areas of Dubai have the same message – sure, they have their end-user buyers, but a sizable portion of the units will still be rented out.
18-04-2025
- Business
Dubai Rents Show Signs of Decline in Select Communities After Double-Digit Increases
Dubai's rental market is showing signs of stabilisation after years of sharp increases, driven by population growth and strong post-pandemic demand. While rents remain high in prime areas, the overall pace of increase has slowed, with some communities even seeing modest declines. Industry experts agree that the era of double-digit rent hikes is over. Lewis Allsopp, chairman of Allsopp & Allsopp, noted an 8% month-on-month decrease in average rental prices across apartments and villas. 'Apartment rentals alone dropped 9% year-on-year, signaling a shift toward a more balanced market,' he said. The launch of Dubai's Smart Rental Index, which promotes fair pricing, along with a steady stream of new residential handovers, is pushing landlords to rethink their strategies. Rupert Simmonds, director of leasing at Betterhomes, said villa communities like Nad Al Sheba and The Villa have seen rents fall 7–9% over the past year. 'Areas with high new supply, like Dubai Creek Harbour and MBR City, are likely to see further declines,' he added. Mid-tier communities such as Jumeirah Village Circle and Dubai Sports City are stabilising, while luxury areas like Palm Jumeirah and Downtown Dubai remain resilient due to limited availability and high demand from wealthy expats. Landlords are facing growing pressure as more tenants shift toward homeownership. The Dubai Land Department reported a 30% drop in rental renewals month-on-month. 'This competition is prompting landlords to be more flexible to avoid vacancies,' said Simmonds. Joshua Nairn from Huspy Real Estate summed it up: 'The market has matured. While we may see fluctuations in areas with new supply, a city-wide decline in rents is unlikely given Dubai's strong fundamentals.' News Source: Khaleej Times
Khaleej Times
18-04-2025
- Business
- Khaleej Times
Dubai: Are rents dropping in some communities after double-digit hikes?
Rents in some Dubai communities have declined. Overall, however, rents are increasing at a slower pace. Real estate industry executives say that the era of double-digit rent increases is behind us as the market has matured. It is now seeing much more stable and gradual growth in rentals. Rents and property prices have been rising after the pandemic due to strong demand from a growing population, which is rising at an almost double-digit rate. Lately, rents have been plateauing after the four-year rally and industry insiders say that they are dropping in some areas. These include locations where new supply has hit the market, and older buildings following the launch of the new Smart Rental Index. Lewis Allsopp, chairman at Allsopp & Allsopp, said there are signs that the emirate's rental market might be entering a period of adjustment. He said Allsopp & Allsopp's data showed an 8 per cent decrease in average rental prices across both apartments and villas/townhouses month-on-month. 'Specifically, apartment rentals have seen a 9 per cent year-on-year drop. These figures suggest a shift in the market's previous upward trend which could create a more balanced environment for both landlords and tenants.' Rents in Dubai are likely to adjust because of a few things. The new smart rental index is a major factor, pushing landlords to keep prices fair. More new buildings mean more rental options too. Plus, with more tenants considering buying homes, landlords need to be competitive. All of this is working to balance the rental market. 'Rents have already decreased from their peak in certain areas, with some achieving lower rents in 2025 compared to 2024. Villa communities like Nad Al Sheba and The Villa have seen a 7-9 per cent drop over the past 12 months,' said Rupert Simmonds, director of leasing at Betterhomes. He added that communities with a high level of new supply are likely to experience declines starting in 2025 into 2026. 'While some rents have plateaued or even declined, others are still increasing. Prime areas such as Palm Jumeirah, Downtown Dubai, and Dubai Hills Estate have remained stable or risen due to high demand and limited luxury properties. Meanwhile, mid-tier and affordable communities like Jumeirah Village Circle (JVC), Dubai Sports City, and Discovery Gardens show signs of stabilisation,' he said. According to Simmonds, luxury properties in prime areas such as Palm Jumeirah and Dubai Marina will likely be less affected due to limited availability and the influx of high-net-worth individuals (HNWI) and ultra-high-net-worth individuals (UHNWI) moving to Dubai. Growing competition among landlords Allsopp added that the trend of rising rents has pushed many tenants towards homeownership, with the Dubai Land Department reporting a 30 per cent month-on-month decrease in rental renewals. 'This is prompting landlords to reconsider rental pricing to attract new tenants. Additionally, the Smart Rental Index will likely put pressure on landlords of older buildings to lower rents if they don't meet current amenity and finishing standards,' he said. Rupert Simmonds noted that areas that are seeing a high volume of new unit handovers such as Dubai Creek Harbour, Mohammed Bin Rashid City, and Dubailand, could experience rent decreases. 'This is because increased competition among landlords will likely put downward pressure on rental prices. Landlords who are inflexible may face more vacancies, increasing downward pressure on prices. Landlords should be flexible on price to ensure maximum occupancy and minimum void periods because that is where a landlord makes the biggest loss,' added the director of leasing at Betterhomes. No more double-digit rental increase Joshua Nairn, leasing manager at Huspy Real Estate, believes the era of double-digit increases is behind us. He expects some fluctuations in communities experiencing mass handovers of new properties, as the increased supply could temporarily impact rents in those specific areas. However, overall, he doesn't foresee a decline across the city. 'The market has matured, and we are now seeing much more stable and gradual growth in rental prices,' he said, adding that he doesn't foresee rents decreasing in Dubai's major communities. 'With that being said, we may see fluctuations in specific areas or certain market segments, but I do not anticipate a widespread decline across the city. Given Dubai's strong market fundamentals — including population growth and economic stability — I don't expect significant declines in rent over the next couple of years, certainly not by 2025 or 2026,' he added. Nairn added that new residential units are being introduced to the market, helping to balance supply and demand, potentially slowing down the rate at which rental prices increase.
Khaleej Times
12-03-2025
- Business
- Khaleej Times
Dubai: Rents increases slow down as more inventory comes online
Rent increases have started to slow down in Dubai due to new inventory, giving tenants more options, says real estate industry executives. 'We're seeing increased rental inventory online, reinforcing the trend of rent stabilisation in some areas in 2025. Tenants in these sectors now have more options and are increasingly price-sensitive, while landlords who price competitively secure tenants more quickly,' said Rupert Simmonds, director of leasing at Betterhomes. Since rents have surged in recent years, Simmonds believes that 'minor fluctuations are part of a healthy market cycle.' The drop in rents follows Dubai recorded its first monthly price decline in over two years in January 2025, signalling a long-anticipated shift toward equilibrium. Stay up to date with the latest news. Follow KT on WhatsApp Channels. Property Monitor data revealed average prices falling by 0.57 per cent in January 2025 to Dh1,484 per square foot — the first drop since summer 2022. This cooling follows four consecutive years of unprecedented growth, during which prices surged by over 30 per cent in 2024 alone. According to real estate consultancy and brokerage Asteco, the delivery of new supplies in 2024 was lower than anticipated, but projections for 2025 indicate a significant increase in inventory. 'Assuming the majority of this projected supply enters the market, a moderation, or even a reversal, of rental growth could be observed in specific communities and/or projects. Affordability factors are expected to fuel continued migration to the Northern Emirates in 2025, a trend that gathered pace in the second half of 2024,' it said. Asteco projected that 63,900 apartments and villas will be delivered this year, compared to 33,625 in 2024. Cavendish Maxwell, a real estate consultancy, earlier forecasted that 243,000 new units are in the pipeline for delivery by the end of 2027, with apartments accounting for 80 per cent of the future inventory. This will further ease pressure on prices and rentals in Dubai. This will stabilise prices and rents and ease pressure on tenants. Most of the future supply will come in Jumeirah Village Circle, where almost 25,000 units are set to be delivered between now and 2027, followed by Business Bay (16,000), Azizi Venice (13,500), Damac Lagoons (11,100) and Arjan (9,000). Betterhomes data showed that the strongest rental growth was seen in apartments at Al Khail Heights, where rents increased by 6.6 per cent to an average of Dh66,900. Townhouses in Palm Jumeirah followed closely, with a 6.5 per cent rise to Dh127,300.
