According to JLL’s latest UAE Real Estate Market Performance report, rents in the emirate of Dubai fell by 12% year-on-year, surpassing the lowest point on the rental index from almost a decade ago in 2010/11.

The JLL report added: “Looking ahead, the residential market is expected to remain under pressure in the short-term in light of various macro uncertainties, namely high unemployment rates and a slowdown in population growth. This is in addition to subdued investor sentiment on a global level. As such, we expect developers to continue offering a range of incentives (fee waivers, discounts, rent-to-own), as well as partner with banks in offering reasonable home finance options to attract new investors and end-users looking to take advantage of the lower prices.”

The report revealed that Abu Dhabi’s residential market also recorded some softening, with declines of 3.5% on average on an annual basis. In terms of sales prices, Dubai registered a 9% decline for Q3 2020 compared to the same period last year; while Abu Dhabi saw a 3% average drop.