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Dubai: Rents in Dubai have dropped an average of 23 per cent since the end of 2008 and are likely to drop further as we head into the summer despite the distinct lack of an updated index, property experts say.
Average rents in Dubai have eased 23 per cent since quarter four 2008 although the level of decline does vary by development, said Matthew Green, head of research and consultancy for the UAE region, at CB Richard Ellis.
Click here to see a map of rental prices
Rents have already dropped significantly in recent weeks, with the biggest drop being seen in Discovery Gardens, according to CB Richard Ellis' quarter one market review.
In quarter three 2008, rents in Discovery Gardens were in the range of Dh90, 000 to Dh110, 000 for a one-bed apartment.
These days, you can snap the same unit up for about 33 per cent less, at Dh60, 000 to Dh75, 000.
Office rents dropped by an average of 19 per cent in the first quarter since the start of the year, reducing from Dh550 per square foot to Dh450 per square foot.
And further good news for tenants is that rents are expected to decline more due to increasing supply and a reduced number of people to fill units.
"I think there could be further reductions in the rental market with considerable new stock to be completed and handed over this year. Unfortunately, Dubai is entering a period of over-supply while at the same time demand is wavering, compounding the situation," Green added
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