Landlords under pressure to bring down rentals
Abu Dhabi rents are likely to keep falling in the first quarter of 2010, due to the downward pressure exerted by more supply and increasingly affordable Dubai rentals, according to Landmark Advisory, the real estate consultancy firm.
"We expect Abu Dhabi rents to keep falling through the first quarter of 2010, especially for larger units (three to five bedrooms) because smaller units remain in higher demand. Furthermore, rents in sectors that already fell significantly are now likely to see some relative stability," the consultancy said in its Abu Dhabi lease guide for January.
"There is a high degree of integration between the residential and commercial real estate markets of Abu Dhabi and Dubai," said Jesse Downs, Director of Research & Advisory Services, Landmark Advisory.
"As rents are more attractive in Dubai, some residents of Abu Dhabi find it easy to accept the trade-off of living in Dubai and commuting to work in Abu Dhabi. As a result, Abu Dhabi landlords have to compete with Dubai's better value, and average rent levels will likely keep declining gradually to mitigate this 'Dubai effect.'"
They also said, the current situation in Dubai's real estate market had prompted many investors to look at acquiring furnished apartments for short-term and more »
Prices of one bedroom apartments were the worst hit, with declines of around 34 percent over the same period. The report says that landlords are now and more »
ArabianBusiness.com on an average, stable over 2009's last quarter, apartment in Abu Dhabi are still about 20% more expensive than those in Dubai, with regards to the rent. Landmark Advisory Abu Dhabi Leasing Guide: Rental prices likely to keep Report: Abu Dhabi rents to keep falling in Q1.Apartment rents in Dubai 20 percent lower than Abu Dhabi - -all 31 news articles »
