Emirates Business reports that rents in Dubai continue to fall with new supply responsible for the price pressure. Lower rates in Dubai are tempting relocations from the Capital. As if the Abu Dhabi - Dubai deathway isn't busy enough.
Given the number of new units coming on stream in the next two years - estimated here at 100,000 - it seems this trend is likely to continue.
"Tenants are increasingly seeking more value for their rental dirham and are able to leverage alternative options to negotiate very attractive deals. This is pushing up bid-ask spreads and illustrates that landlords are conceding in negotiations with ever more discerning and value-seeking tenants. More significantly, this is a trend now observed in high-quality units in prestigious locations, which is a segment that has experienced relatively minimal volatility in late 2009 and the first quarter of 2010 due to relocation trends.
The lower limits for a one-bedroom on the prestigious Jumeirah Lakes Tower (JLT) have fallen six per cent while one-bedroom apartments in JLT have fallen a further 10 per cent since publishing the previous lease guide."
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