x Abu Dhabi, UAETuesday 25 July 2017

Dubai apartment rents still dropping though fall slowing

Apartment rental rates in Dubai continue to fall, but the decline is slowing, new data suggests.

A To-Let banner on a residential building at Discovery Gardens in Dubai. Rents are still falling but the rate is slowing, new figures show today.
A To-Let banner on a residential building at Discovery Gardens in Dubai. Rents are still falling but the rate is slowing, new figures show today.

Dubai apartment rental rates dropped 17 per cent in 2010, property management firm Asteco reported today.

However, the decline was better than the 24 per cent drop reported in 2009, the company said. And apartment rents dropped just three per cent in the fourth quarter of 2010, "the lowest quarter-on-quarter fall during the year, an indication that the market is showing signs of stablilisation", the company said.

Apartment sale prices in Dubai fell two per cent in the fourth quarter of 2010, while villa prices were flat, Asteco reported.

Overall rental prices dropped 8 per cent in 2010, "with downward pressure more predominant in developments with a large inventory," Asteco said.

Asteco's numbers are close to the latest report from Cluttons, which showed apartment rental prices down 3.3 per cent for the quarter and sales prices down 2.4 per cent. But Cluttons showed villa rental prices down 5.1 per cent, noting that consumers are looking for more affordable properties.

Studios reported the lowest decline in rental rates, while one bedroom apartments suffered the largest fall, a reflection of the large number of units on the market, Asteco reported.