Average rents for apartments in Dubai fell by 16 to 26 percent in the second quarter of 2009 compared to the first, while office rents fell on average by 20 percent in the same period, a new report by property management firm Asteco said Thursday.
Studios faced the highest decline with a 26 percent average drop coming down to Dh45,500 from Dh61,500 in the first quarter. In the same period, one-bedroom rents fell 16.13 percent from Dh78,000 to Dh132,000, two-bedroom rentals fell 18.94 percent to Dh107,000 from Dh132,000 and three-bedroom rents fell 19.19 percent to Dh 149,500 from Dh185,000.
“As rental rates continue to decline, residents are moving from older buildings in less desirable locations to quality units in New Dubai, such as Dubai Marina, Jumeirah Beach Residence and Discovery Gardens. This is particularly the case where single occupants and small families are concerned, as the moving costs are lower, and they are usually more flexible than larger families,” the report noted.
Managing Director of Asteco, Andrew Chambers, said, “Those working in Abu Dhabi are increasingly exploring residential units in New Dubai due to its proximity to the UAE capital. While tenants are seeking units in community developments, demand has mostly been for one- and two-bedroom apartments and for three- and four-bedroom townhouses.”
The decline in business in Dubai has reduced commercial rents by an average of 20 percent. The commercial property segment has been the hardest hits with prices falling on average of 24 percent since April.
