Property in Dubai
Dubai rents plunge 23 percent
Rents in Dubai have plunged 23 percent this year, and are likely to drop further during summer, although the updated index is yet to be out, say property experts.
Average rents in Dubai have fallen 23 percent since fourth quarter of 2008, but, the extent of decline varies by development, says Head of Research and Consultancy for UAE region, Matthew Green at CB Richard Ellis.
During the third quarter of 2008, the rents in Discovery Gardens were in the range of Dh.90,000 to Dh.110,000 for single bedroom apartment. At present however, the same unit can be snapped up for about 33 percent less i.e., at Dh.60,000 to Dh.75,000.
During the first quarter the office rents dropped by an average of 19 percent. The rents are likely to reduce even further, with increasing supply and reduced population to occupy the units.
Green said that there could be more reductions in the rental market, with a sizeable amount of new stock to be completed and handed over this year. But, Dubai is entering the phase of over-supply, and the demand is already waivering, thereby worsening the situation, Green added.
Posted on 11/5/2009