By Andy Sambidge
Apartment rental values see 4% fall in Q3, compared to 12% drop in previous quarter.
Apartment rental rates in the Northern Emirates continued to fall in the third quarter of 2009 but at a slower rate than previously, according to a report by Asteco.
The average decline in rents slowed to four percent, compared with 12 percent in the second quarter and 21 percent in quarter one of 2009, said the Asteco Northern Emirates Q3 2009 report published on Tuesday.
The study also showed that Fujairah recorded the smallest decline of two percent to an average of AED29,625 per year, making it the second most affordable place for apartments in the Northern Emirates.
Umm Al Quwain continued to be the most affordable emirate with average rental rates at AED26,625 per year, the report added.
Ajman recorded the largest decline in rents from AED35,463 to AED33,500 per year while Sharjah is still the most expensive emirate in which to live of the Northern Emirates.
In the second quarter Umm Al Quwain, Fujairah and Ras Al Khaimah reported decreases of 9, 8 and 11 percent while in the third quarter, declines were more conservative at 4, 2 and 4 percent respectively.
"Since the fourth quarter last year, when the economic downturn became apparent in the Middle East, average rental rates across the Northern Emirates fell by nearly 34 percent from AED48,450," the report said.
It added: "It should be noted that such a substantial decrease is reflective of the sharp increases which were experienced prior to the financial crisis. For example, apartment rental rates in the Northern Emirates had increased by 22 percent during the first three quarters of 2008."