UAE rents are remaining strong despite property asking prices falling according to a new survey, offering opportunities for overseas property investors to boost rental yield returns on investment properties in the UAE.
The yallacompare Consumer Confidence Tracker for the second quarter of 2019 shows more than 70 per cent of UAE residents still pay the same or even more in UAE rents compared to the previous year.
The findings come despite the survey revealing a 5 per cent drop in Dubai apartment purchase rates in the first half of this year.
Of the respondents to the yallacompare survey, 33.1 per cent said they were paying more in UAE rents than they did in 2018. More than 8 per cent of respondents said they were paying in excess of 20 per cent more for rent than the previous year.
However, despite the lack of decreases in rent, a majority of respondents (67.3 per cent) said they did not plan to move in the next year, meaning that overseas property investors could also enjoy settled rental demand and minimise void periods, in addition to UAE rents remaining stable or even increasing.
More than 1,000 UAE residents took part in the latest yallacompare survey. The quarterly survey asks a range of questions on the state of UAE residents’ finances and their attitudes towards work.
Jonathan Rawling, CFO of yallacompare, said: ‘The headline finding here, that 70 per cent of us pay the same or more than a year ago does seem surprising. But as we’ve said before: if you don’t ask, you don’t get.’
He continued: ‘Residents must negotiate better terms with their landlords at least three months before a lease expires. Otherwise, the contract automatically renews on existing terms. So, start negotiating and be prepared to move house if your landlord won’t budge.’