Rental decline slows in Northern Emirates
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 largest property services company in the United Arab Emirates.
“The average decline in apartment rental rates has slowed considerably to 4% compared with 12% in the second quarter and 21% in quarter one of 2009,” says the Asteco Northern Emirates Q3 2009 report. “However, there has been limited activity in the market due to the summer holidays coinciding with Ramadan, both traditionally quiet periods.”
The report by Asteco, which carries out comprehensive property market analysis across the UAE, also found:
• Fujairah recording the smallest decline of 2% to an average of AED29,625 per annum, making it the second most affordable place for apartments in the Northern Emirates.
• Umm Al Quwain continuing to be the most affordable emirate with average rental rates at AED26,625 per annum.
• Ajman recording the largest decline in rents from AED35,463 to AED33,500 per annum,
• Sharjah continuing to be the most expensive emirate in which to live.
In the second quarter Umm Al Quwain, Fujairah and Ras Al Khaimah reported decreases of 9%, 8% and 11%. In the third quarter, declines were more conservative with records showing 4%, 2% and 4% 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% from AED48,450,” the report says
It adds, however: “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% during the first three quarters of 2008.”