“The average decline in apartment rental rates has slowed considerably to 4% compared with 12% in the second quarter and 21% in quarter one of 2009. However, there has been limited activity in the market due to the summer holidays coinciding with Ramadan, both traditionally quiet periods,”
says the Asteco Northern Emirates Q3 2009 report.
The report by Asteco, which carries out comprehensive property market analysis across the UAE, also found:
• Fujairah recording the smallest decline of 2% to an average of Dhs29,625 per annum, making it the second most affordable place for apartments in the Northern Emirates.
• Umm Al Quwain continuing to be the most affordable emirate with average rental rates at Dhs26,625 per annum.
• Ajman recording the largest decline in rents from Dhs35,463 to Dhs33,500 per annum.
• Sharjah continuing to be the most expensive emirate in which to live.
In the second quarter Umm Al Quwain, Fujairah and Ras Al Khaimah reported decreases of 9%, 8% and 11%. In the third quarter, declines were more conservative with records showing 4%, 2% and 4% respectively.
“Since the fourth quarter last year, when the economic downturn became apparent in the Middle East, average rental rates across the Northern Emirates fell by nearly 34% from Dhs48,450,” the report says
It adds, however, “It should be noted that such a substantial decrease is reflective of the sharp increases which were experienced prior to the financial crisis. For example, apartment rental rates in the Northern Emirates had increased by 22% during the first three quarters of 2008.”
The Asteco Northern Emirates Q3 2009 report also highlights the continuing decline in Sharjah office rental rates where offices with basic facilities can be found for Dhs45 per square foot.
Tuesday, October 20- 2009 @ 16:50 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.