Dubai rent or reduction in rents due are affecting house price in the market, With the Dubai property market currently active with investors looking for homes with greater returns, oversupply in areas like the marina and JLT are forcing rents down which in turn is forcing Dubai Property prices down to an all time low.

Many property investors who brought early in Dubai were able to obtain double digit rental income from their property as well as fantastic growth now with the crash of the market, many would be investors are looking to purchase properties in order to acquire such gains but are being disappointed that with oversupply causing falling rents are noticing that the double digit returns are not being achieved and that in some cases 5% returns are being quoted which is causing a stall in the market and further reducing prices.

Jumeirah Lake towers for example a studio for example 2 years ago would have been costing 80,000 aed to rent now 30,000 to 40,000 aed is a more reasonable figure to expect, and a ratio of 10% rental income is now driving prices as low as 300,000 aed to 400,000 aed in these areas. Also with service charges being a consideration price pressure on property valuations are even lower.

It is hoped that a much more improved economic environment will help stimulate a current working transient population to look at more longer terms prospects and become home owners and this will help improve valuation on properties, many times we here that we will rent and see how house prices will go and have we a stable job for the future.

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