Landlords against the wall as virus cuts prime property rents by 30pc
Economic pressure on the back of Covid-19 pandemic has forced landlords to adjust rents downwards in months preceding the end of the second quarter of 2020.
A new Hass Consult Rental Price Index says that 47 per cent of tenants surveyed in the index indicate rent discounts of between 25 and 30 per cent during that period as rents in Donholm registered the biggest quarterly drop of 4.8 per cent.
The dip in prices were profound in detached houses and apartments at one per cent and 0.3 per cent respectively while areas around Kitusuru had the highest drop on an annual basis at 7.7 per cent.
The firm predicted that the real estate sector will rebound o post Covid–19 period after specific segments of the sector of experienced a huge dip at the onset of the pandemic.
Head of Development Consulting and Research at HassConsult Sakina Hassanali maintained optimism, saying the move to ease restrictions and open the skies to local and international fights had a positive impact on the sector.
“The worst period after the pandemic broke out is over. The freezing of the economy is the worst scenario that we were subjected to.
The measures the state took to do away with means we are inching towards recovery,” she said.
Sakina singled out rental segment when she unveiled the 2nd quarter house price index 2020 report as the worst with tenants failing to meet demand after losing jobs what guarantees them a 30 per cent rent and salary cuts.
Sakina said the drop in rental income in Kitisuru was after property owners came to terms with the reality of the economic situation and not necessarily due to expatriate flight seen a few years ago.