By Claire Ferris-Lay
Average rents in the emirate declined 5 percent from July to November
Apartment rentals in Abu Dhabi have declined by as much as 16 percent in some areas as the capital continues to suffer from an oversupply of new inventory, according to a report released on Tuesday.
Average rents in the emirate declined 5 percent from July to November while rents for apartments in the cornice area suffered from the biggest declines of 15 percent, Landmark Advisory said in its November Leasing Guide for Abu Dhabi.
Off-island villa rents fell 4 percent while the cost of renting an Al Reef villas declined by as much as 15 percent due to poor quality, inconvenient location and increased competition from landlords, said the group.
“As expected, lease rates have continued to decline since our last lease guide in July 2010. This has impacted some areas more than others, particularly those where new supply is being delivered,” Jesse Downs, director of Research & Advisory at Landmark Advisory, said in a statement.
New residential areas offering better facilities mean landlords of older buildings are being forced to lower their rates, said the report. “New supply has resulted in intense competition from those landlords looking to poach tenants from older buildings where the quality in no way matches the rent being charged. Those landlords of older or poorer quality buildings, who now have vacancies, are being forced to lower their apartment rents significantly in order to attract demand.”
Commercial rents have also suffered as companies have opted to stay in existing locations until rates drop further. Average commercial rents fell 6 percent between July and November while some on-island suffered 23 percent declines.
Landmark Dubai has charged me AED 2000 tenancy contract renewal fee, which I understand is illegal in Dubai. But theyï»¿ are not listening to me or arranging refund of my money.