The average annual rent for studio apartments in Dubai fell by six percent in July at AED57,000 ($15,518) compared to the start of the year, according to the latest data from real estate website Bayut.
Its report also said average studio rents in neighbouring Abu Dhabi dropped 5 percent to AED56,000 in July.
Bayut said Dubai's real estate market remained strong with rental yields going as high as 6.5 percent in select apartment categories.
Overall, however, apartment rents were seen becoming more and more affordable with a total downward adjustment in July of 2 percent.
The report also showed that average rents for one-bed units were AED92,000, 7 percent down while two-bed apartments fetched owners AED145,000 annually in July after a downward adjustment of 3 percent.
Commanding AED206,000, average rents for three-bed units remained stable when compared with H1 values while the 4+ bed category returned an average annual rent of AED304,000 in July, a 2 percent drop.
In Abu Dhabi, the average apartment rent was AED126,000 per annum, a 6 percent downward adjustment from the average rent recorded in H1 2016.
Compared to values calculated in July 2015, the average studio rent in Abu Dhabi dropped 5 percent to AED56,000 in July, while rental values of one-bed apartments fell by 6 percent to AED91,000, the report said.
Two-bed and three-bed apartment rents fell to AED129,000 and AED172,000 respectively, registering decreases of 4 percent and 5 percent while the average rent of 4+ bed apartments also came down by 4 percent to AED247,000.
Bayut said: "At a time of general global slowdown, the performance of UAE's realty market continues to inspire trust in investors. Both Dubai and Abu Dhabi continue to be safe havens for global realty investors and the increasing prospects of Sharjah's real estate sector provide yet another avenue for parking international wealth in a quickly developing market.
"Though rents have seen periodic adjustments, Bayut believes the UAE's unique selling propositions such as a highly smart, diversifying economy, security of investment and the great promise of Expo 2020 will keep the real estate and its allied sectors thriving in the months to come."For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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