By Staff writer
Dip comes as prices in mid-market areas stabilise, says real estate report
Rents in upscale Dubai neighbourhoods have declined appreciably but continue to be high in all other areas, according to a report.
Prices in mid-market locations, which had dropped in the past nine months, have stabilised, said the report from Reidin-GCP.
“Despite layoffs [in many key sectors], rentals have held steady in most communities, indicating underlying strength,” it said, reported Gulf News.
Rents across Dubai are down six per cent following 10 per cent declines in property values that freehold areas have experienced since mid-2014.
Neighbourhoods including Downtown, Jumeirah, Al Wasl and Dubai Marina are down by a wider margin when compared with Sports City, Discovery Gardens and traditional sub-markets of Karama, Bur Dubai and others, making rentals unlikely to drop to 2011-12 levels.
“At the top end, there has been a correction across the board, both in the villa/town house only locations and in the super-premium apartment towers in Downtown and Dubai Marina,” said Sameer Lakhani, Managing Director of Global Capital Partners. “In these communities, we have witnessed rental corrections of 10 to 12 percent.”