Rents in Dubai appear to be slowing down following a period of extended growth, a leading consultancy has revealed.
Asteco said “no significant residential rises” have been seen in the last three months, although year-on-year average residential rents in Dubai climbed by almost 22 per cent.
A quarterly real estate report from the firm adds Sheikh Zayed Road continues to be one of the most coveted residential areas, recording the highest annual rental growth at 51 per cent.
Bur Dubai continues to hold its position as a preferred location, offering a variety of conveniences, transport options and entertainment despite traffic woes.
Asteco managing director Andrew Chambers said:
“Occupancy rates in Bur Dubai are extremely tight – between 90 and 95 per cent. Owing to its relatively affordable rents, most tenants tend not to move out resulting in a shortage of reasonably priced units and pushing rents up further.
“With availability coming only from new buildings, landlords are tempted to dictate higher prices which are met by desperate home seekers.”
Other areas such as The Greens, Satwa, Muraqqabat and Garhoud have seen around 10 to 15 per cent growth in rental rates over the second quarter of 2007.
The figures will be of interest to buy-to-let property investors with Dubai-based portfolios. Earlier this month, consultants John Charcol Dubai said British ex pats who have moved to the Emirate are now looking to buy properties rather than rent them.
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