With fewer jobs, there are fewer people with money to pay for rent. Compounding the decline in demand is the increase in supply of new properties. Just this year alone, some 30,000 units are expected to be turned over to investors. So far, about a tenth of the number has already been delivered.
A quick look at various property listings in Dubai shows owners enticing potential tenants with “free” rents, especially for flats that have recently been delivered. “Brand new, one-month free rent, with appliances,” reads one listing.
Landlords are also resorting to other concessions, such as reducing rents for existing tenants, accepting multiple cheques and paying broker commissions. Owners have no other recourse, considering that they stand to lose money if their property stays empty even for just one month.