The maximum number of renters in Dubai and Abu Dhabi are looking for properties with leases of between Dh50,000 and Dh100,000 per annum (pa), according to a new report.
Almost 25 per cent of all Dubai searches are for properties priced between Dh50,000 and Dh100,000 pa, while in Abu Dhabi 29.27 per cent are looking for units in the same bracket, a third quarter 2015 report by propertyfinder.ae.
Almost 23.44 per cent of the searches are also for properties with prices of Dh100,000 to Dh150,000 pa. In Abu Dhabi, the percentage stands at 26.24.
Dubai Marina is the top searched area on the rental side followed by Palm Jumeirah, Jumeirah Lakes Towers, Downtown Dubai and Business. The three least searched areas in the quarter were Discovery Gardens, Tecom and Al Barsha.
On the sales front, Dubai Marina tops the list followed by Downtown Dubai, Palm Jumeirah and Jumierah Lakes Towers. The last three places go to International Media Production Zone, Discovery Gardens and Dubai Festival City.
In the villa segment, Arabian Ranches remain the top visited community followed by the Springs, Dubailand and Palm Jumeirah. However, in terms of median price of Dh37 million, Emirates Hills tops the list followed by Arabian Ranches at Dh4.39 million.
In Abu Dhabi, Al Reem Island remained the most visited community followed by Al Ghadeer, Al Khalidiya and Al Raha Beach. The three least visited areas were Al Najda Streer, Al Nahyan Camp and Saadiyat Island. Hamdan Street boasts the highest median sales price of Dh75 million, the propertyfinder.ae said.
On the villa front, Khalifa City was the most searched area followed by Al Reef and Mohamed Bin Zayed City. As for the prices, Al Reef topped with median price of Dh2.1 million with Nurai Island being the most expensive villa community with a median price of Dh36 million.
Separately, a report issued by Standard and Poor’s Rating Services on Monday said it expects additional housing supply and slightly lesser demand constraining prices and rental rates in Dubai’s residential real estate market over the next 12 months.
The report reiterated that property prices in Dubai’s residential housing market are expected to fall by 10 to 20 per cent this year.
Citing Reidin, the ratings agency said 20,170 new units are planned for delivery in 2015 compared with the three-year annual average of 11,600 units.
Price growth has already started cooling down this year with Reidin’s residential property price indices for Dubai showing a negative growth of 10 per cent year-on-year as of August 2015.
S&P expects Abu Dhabi, which is facing shortage of quality housing, will prompt rents to climb up albeit at a much slower pace than the 11 per cent of 2014.
“With only 5,000 units scheduled for deliver y in 2015, if rental caps or similar regulation aren’t introduced, we may continue to observe rent increases in the emirate’s capital. However, the currently softer economic conditions, driven by lower oil prices, could keep rent increases in the single digits,” the report said.