Estico, a company specializing in real estate consulting services, said that tenants in Dubai can negotiate more with landlords regarding rent prices, thanks to the large number of new residential units that entered the market in 2016 and will enter the market in 2017 for a total of 57,750 residential units.

A total of 44,000 residential units (31,500 apartments and 1,500 villas) are scheduled for delivery this year, 2017, in the «City Walk» , »Akoya,» »Dubai Wharf,» and »Mera,» in addition to 13,750 residential units (8,750 apartments and 5,000 villas) that were already delivered in 2016.

«Tenants have many options among the properties completed in 2017, in both new and existing residential complexes,» said John Stevens, the company’s CEO. and the volume of new supply will influence market prices despite expectations of population growth."

He added »Landlords are offering attractive incentives to tenants, such as increasing the number of checks, particularly in recently delivered residential complexes that lack infrastructure, shops, and recreational amenities. Furthermore, unit owners—especially those with mortgages—are more inclined to lower rental rates to avoid remaining vacant for extended periods without generating any rental income."

The report showed that average apartment rents declined by 5% during the fourth quarter of 2016 compared to the previous quarter and by 6% over the year, with clear variations across certain areas. Most areas saw rental rates for one-bedroom apartments—priced between 5,000 and 15,000 dirhams—decline, with average rents reaching 105,000 dirhams in Jumeirah Beach Residence, AED 75,000 in Business Bay, and AED 45,000 in International City. The average rent for one-bedroom apartments in Jumeirah Lakes Towers reached 75,000 dirhams, a decrease of approximately 15,000 dirhams over the year, while the average was 115,000 dirhams in Downtown Dubai, 95,000 in Al Rawda, and 75,000 dirhams in Al Barsha.