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Average apartment rents in Dubai fell by six percent in the first half of 2016, double the drop in neighbouring Abu Dhabi, according to a new report by real estate website Bayut.com.
The report calculated the average rent in Dubai to be AED131,000, compared to AED135,000 in Abu Dhabi.
Category wise, studio apartments in Dubai commanded average rents of AED57,000 in the first half of 2016, down 7 percent versus H1 last year.
Bayut said the average rent of 1-bed and 2-bed apartments in the emirate was AED99,000 and AED150,000, respectively, down by 4 percent and 6 percent.
The average rent of 3-bed and 4-bed apartments fell by 6 percent in the same period, the report added.
Faring marginally better than neighbouring Dubai, average rents in the UAE capital faced a downward dip of 3 percent in H1 compared to the year-earlier period.
Studio apartments in Abu Dhabi cost an average of AED63,000 to rent, up 2 percent while one-bed apartments were rented out at an average of AED97,000, down by 1 percent compared to H1 2015.
The rents for 2-bed and 3-bed apartments averaged AED136,000 and AED181,000, respectively, down 4 percent and 2 percent.
The report said: “With the market moving into the second half of the year, global developments continue to weigh on the world economy. Regional security and political issues like Brexit have ushered in an era of uncertainty that is making investors and home buyers delay their spending decisions in some cases, resulting in the marginal loss of pace in vibrant real estate markets like the UAE.
“Still the UAE government’s commitment to job creation, ecological improvement, boosting the tourism sector and development of Expo 2020-related infrastructure remain continued drivers for the economy, helping attract human capital that is in turn keeping demand for quality and affordable real estate options on the rise.
“Dubai and Abu Dhabi continue to be among the few rewarding realty markets in the world and will continue to do so in the near and distant future.”
Source: arabianbusiness.com
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