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Discuss this article (7 Comments)UAE rent rises slow to a standstill - report
by This email address is being protected from spam bots, you need Javascript enabled to view it on Monday, 12 January 2009
ASTECO REPORT: New research show rental costs in the UAE have slowed dramatically. (Getty Images)
The cost of renting a one-bed apartment in Dubai did not rise at all during the last three months of 2008, according to a new report.
This was part of a general slowdown in rent rises for many apartments in Dubai and Abu Dhabi during the period, the UAE-based property services firm Asteco said in its fourth quarter report.
In Abu Dhabi, rents for units with two or three bedrooms also levelled off, UAE daily The National reported on Monday.
After years of extreme rental inflation, it seemed the UAE would at last enjoy a sustained period of stability, Andrew Chambers, the managing director of Asteco, told the paper.
“Certainly for the next three to nine months I don’t think there will be anything that will cause a move back to rapid inflation,” Chambers said.
Average annual rent for studios, and apartments with one, two and three bedrooms in Dubai were 80,000, 123,000, 165,000 and 243,000 dirhams respectively, Asteco reported.
Average rents for villas in Dubai climbed by eight per cent between the third and fourth quarters of last year. The company did not release similar figures for the capital.
The report just days after Rera, Dubai’s property market regulator, said a rental index would soon be released and would provide price bands for various types of property in different areas of the city.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
So long Greed!
Posted by Aj on Tuesday 13 January 2009 at 22:21 UAE time
I know its not fair calling landlords greedy, some of them have worked hard and played fair, while the rest were just coming with only one thought," UAE is where you get to be a Milllllllionaire over a night" ! .. well .. I remember 7 months ago i was begging some sales agents to find me something that match my limited budget and they were talking to me like i was some kinda of dog! and now after the hot shots fancy show-off tenants left, they are now as nice and as "helpful" as any person can be!
Its sad, but I flash my biggest smile everytime i log in and check prices!!
to tenants: hold off it will still go down
to landlords: with you getting stuck with service charges and having to secure some fat installment, i beileve its about time you review your asking price!
Posted by Aj on Tuesday 13 January 2009 at 22:21 UAE time
I know its not fair calling landlords greedy, some of them have worked hard and played fair, while the rest were just coming with only one thought," UAE is where you get to be a Milllllllionaire over a night" ! .. well .. I remember 7 months ago i was begging some sales agents to find me something that match my limited budget and they were talking to me like i was some kinda of dog! and now after the hot shots fancy show-off tenants left, they are now as nice and as "helpful" as any person can be!
Its sad, but I flash my biggest smile everytime i log in and check prices!!
to tenants: hold off it will still go down
to landlords: with you getting stuck with service charges and having to secure some fat installment, i beileve its about time you review your asking price!
rents in dubai
Posted by tony on Monday 12 January 2009 at 19:54 UAE time
Some of us landlords are not greedy as Michael puts it, we are stuck with extortionate maintenace fees being charged and very high margins being charge on our mortgages! thats what makes the rents high. Lenders are charging 9% and above although base rates are 1.5%! and for maintenance the charges on apartments can be 4 times that of villas!
Posted by tony on Monday 12 January 2009 at 19:54 UAE time
Some of us landlords are not greedy as Michael puts it, we are stuck with extortionate maintenace fees being charged and very high margins being charge on our mortgages! thats what makes the rents high. Lenders are charging 9% and above although base rates are 1.5%! and for maintenance the charges on apartments can be 4 times that of villas!
rents
Posted by johann, Dubai, United Arab Emirates on Monday 12 January 2009 at 18:48 UAE time
I am surprised where those guys getting their figures from, villa rents rising by 8% in the last quarter ????, where do those guys live, rents are dropping and will drop much further mister expert, its long overdue, as the saying goes, what goes around comes around, "happy days" ahead for the greedy land lords and their willing lap dogs of real estate agents.
Posted by johann, Dubai, United Arab Emirates on Monday 12 January 2009 at 18:48 UAE time
I am surprised where those guys getting their figures from, villa rents rising by 8% in the last quarter ????, where do those guys live, rents are dropping and will drop much further mister expert, its long overdue, as the saying goes, what goes around comes around, "happy days" ahead for the greedy land lords and their willing lap dogs of real estate agents.
Job losses
Posted by Dustop, Dubai, UAE on Monday 12 January 2009 at 17:24 UAE time
Yes there are job losses but lets look at the big picture here. What overall percentage of those working in Dubai have lost their jobs? The percentage you will find is very insignificant and therefore will not have too much an effect on rental prices. Developments being postponed/cancelled will in effect cause another lack of housing which would slow any drop in rental prices. People seem to forget that the whole world is in a economic crisis right now when all calms down, the gulf states will be the first to pick themselves back up again. Watch this space!
Posted by Dustop, Dubai, UAE on Monday 12 January 2009 at 17:24 UAE time
Yes there are job losses but lets look at the big picture here. What overall percentage of those working in Dubai have lost their jobs? The percentage you will find is very insignificant and therefore will not have too much an effect on rental prices. Developments being postponed/cancelled will in effect cause another lack of housing which would slow any drop in rental prices. People seem to forget that the whole world is in a economic crisis right now when all calms down, the gulf states will be the first to pick themselves back up again. Watch this space!
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