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Dubai apartment rents fall sharpest in Q3 in UAE

Rental values for apartments in Dubai continued to fall faster than in any other part of the UAE during the third quarter of 2009, new research has showed.

Three-bed homes were worst hit as they plummeted 13 percent between July and September, a report by property services company Asteco said.
Average prices for the largest apartments fell to AED139,000 compared to average prices of AED173,000 in Abu Dhabi for the same type of property. The rent fell by just one percent in Q3 in the UAE capital, statistics from Asteco revealed.

The cheapest three-bed could be found in Umm Al Quwain (AED40,000), while the average cost in Fujairah was AED45,000. Ras Al Khaimah and Ajman three-beds cost AED49,000 with Sharjah rents AED3,000 more expensive.

Dubai also saw the largest drop in rent for two-bed apartments with values down eight percent to AED103,000 while two-beds in Abu Dhabi were a third more expensive at AED137,000.

Rents ranged between AED30,000 and AED41,000 for two-bed apartments in the other emirates.

Dubai saw one-bed rents fall by four percent in the third quarter to an average of AED76,000, AED28,000 less than the same type in Abu Dhabi.

But both Ajman (six percent) and Umm Al Quwain (five percent) saw largest falls in the period to AED33,000 and AED30,000 respectively.

The only type of apartment that didn't experience a fall in rent in Dubai between July and December was studios where rents held firm at an average of AED45,000.

"The attractiveness of cheaper rents and better value for money in Dubai is clearly visible from the volume of commuter traffic on the Abu Dhabi roads in the mornings and evening," Asteco said in its report.

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