The average rental is falling in the areas of residential, office and retail sector in Dubai. This fall is due to the steady over-supply. This report has been given by the real estate experts.
The rents for the lower end apartments in the international city and within Dubai Marina have decreased considerably. The rents of apartments in Burj Khalifa Downtown are stable according to the reports.
The rent decline was 8 percent from Q4 2009 to Q4 2010. The rents of the low to mid-end apartments have suffered a considerable plunge.
"With a further 25,000 units expected to be completed in 2011, the total residential stock at the end of 2011 will hit a whopping 335,000 units", the JLL report said.
In the year, 2010 36,000 units have been completed. The total residential stock at present is 309,300 units.
There has been many residential projects schedule for 2011. These projects are reported to be on track.
Apart from the residential, the office market also experienced a rental drop. The DIFC has announced fix rents starting January 1, 2011.
Retail malls also experienced a drop of 15 to 30 percent. This scenario has put property owners to become realistic in rent negotiations. The tenants are provided with attractive schemes.
