Dubai rents predicted to stay stable

Rental rates in Dubai are predicted by experts to stay stable, despite an ongoing fall in sales prices.

Rents continue to climb in many parts of the emirate, according to statistics compiled by Better Homes Data for Arabian Business. The correlation between the two sectors, though, is minimal: while house prices have softened this year, dampened by cooling measures (designed to avoid speculative investment) and falling oil prices, rents have risen steadily since 2013 - a trend that is expected to continue, with rates remaining stable in the coming year, regardless of house price falls.

The sales market, on the other hand, is expected to bottom out eventually, with 20,000 new units set to hit the market in 2016.

The figures follow a report from Knight Frank, which highlights the investment opportunities available in Dubai, with the stable rents and falling prices boosting potential yields.