Apartment rents in Dubai have fallen by 22 percent with villa rents dropping by 34 percent during the first quarter of 2009, according to a latest industry report.
According to figures published by property management company Asteco, the average rent for a studio is now AED61,500, for a one-bed apartment AED93,000, for a two-bed apartment AED132,500 and AED185,000 for a four-bed apartment.
The biggest rental drops, according to Asteco, were in Palm Jumeirah, Al Barsha, Bur Dubai and Discovery Gardens where average rents are about 30 percent lower than in the fourth quarter of 2008.
"Unit owners have realised that they can no longer expect double-digit yields, thus they have to compete for the shrinking tenant pool as people leave and supply increases," the report said.
Villa rents have also tumbled with the largest fall of 41 percent seen in the Springs and Jumeirah Islands.
The Asteco report comes just days before Dubai's Real Estate Regulatory Authority (RERA) is scheduled to release its revised rental index.
In the commercial market, office sale prices fell as much as 42 percent since the fourth quarter, Asteco said.
“Instead of purchasing office space, many companies have opted for leasing to help with cash flow,” the company said.For all the latest business 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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