Abu Dhabi looks at Dubai as rents drop

DUBAI — The demand for properties in downtown Dubai, driven by a fall in home prices and rents, went up in the second quarter this year, according to a study.

By T Ramavarman

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Published: Fri 17 Jul 2009, 12:58 AM

Last updated: Sun 5 Apr 2015, 7:58 PM

The tendency to look outside ofAbu Dhabi to rent apartments may have reduced demand in the capital. - KT Photo

Property management firm Asteco, which has come out with the Dubai Q2 Residential and Commercial Report, says the completion of several projects in Dubai Marina and Palm Jumeirah have also spurred the demand.

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Abu Dhabi residents find rents still high

Rise in demand for homes in Dubai

Asteco predicts a further softening of the rental in the emirate while sale prices stabilise. Apartments decreased in price by an average 15 per cent across Dubai and villas by 13 per cent.

However, the drop is significantly less than the previous quarter, when they fell by 44 and 53 per cent, and may mean that the buyer’s market is bottoming out.

Reduced rents have led many Abu Dhabi residents to look at rental contracts in Dubai, a report on Abu Dhabi quotes Asteco Managing Director Andrew Chambers as saying. “Those working in Abu Dhabi are increasingly exploring residential units in new Dubai due to its proximity to the capital.”

The tendency to look outside of Abu Dhabi may have reduced demand in the capital. There are signs that landlords are reducing rents to compete.

“The capital was finally seeing a shift in the market, with the buyers and tenants being able to dictate their terms when selecting their property. Due to the increased choices in residential units, tenants could now negotiate more favourable terms with landlords,” Chambers says.

Do you see a further fall in apartment rents in UAE in the next quarter? You can send your views and comments to news@khaleejtimes.ae with your contact details.


Readers' Feed Back:

Its just a overview and soothing information only not a reality as ask the Official people go out and survey by themselves as not a single fils is down anywhere its just the talk to satisfy the people but in actual I bet u will not get any single good low cost flat or anything to stay in Abu Dhabi or near by areas. Reality is very much far away from the news what is being published. Its all talks of just giving internal relief that rents are going down but it’s not true at all! - Mohammad Aasif, Abu Dhabi

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I have renewed my rental contract in May 2009 with AED 110,000.00 per annum which was earlier AED 65,000.00. I have to do this because there were no flat available in this range in Abu Dhabi. Although if there is one then the landlord ask for the heavy key money around AED 30,000.00 to AED 50,000.00. - Muhammad, Abu Dhbai

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All talk about families! Who cares about bachelors who are working in UAE, more then 75% here!!! It is indeed hard for any bachelor to survive in UAE as the rent is so high and hardly a bachelor gets a place to stay!! In flats they are always treated as insects and the families living in apartments always complain about the bachelors and try to kick them out!!!! The UAE must do something to sort out the problems of the bachelors! - Tareeq Yahiya, Abu Dhabi

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Rents are still very high and every year it is increasing 5%. I have a flat of 2 beds for Dh 48000 and in the same building ,people pay 110000 for 2 bed flat , tell me is that justified? -Raed, Abu Dhabi

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Asteco has got a very baseless report here. I’m willing to take a two bedroom flat anywhere in Abu Dhabi if they can find me for 100K. The rents are still high and flats are not available.- Sam, Abu Dhabi

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High property rates too much greed by the property owners.- Moazam, Karachi

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Nothing is relaxing in Abu Dhabi. Not even 1% decrease has been there in Abu Dhabi. These kind of false reports are only bringing them bad name. - Abbas, Abu Dhabi

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Email : ramavarman@khaleejtimes.ae



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