Rental Decline Slows in Northern Emirates

Apartment rental rates in the Northern Emirates continued to fall in the third quarter of 2009 but at a slower rate than previously, according to a report by Asteco — the largest property services company in the United Arab Emirates. “The average decline in apartment rental rates has slowed considerably to 4 per cent compared with 12 per cent in the second quarter and 21 per cent in quarter one of 2009,” says the Asteco Northern Emirates Q3 2009 report. “However, there has been limited activity in the market due to the summer holidays coinciding with Ramadan, both traditionally quiet periods.” In the second-quarter Umm Al Quwain, Fujairah and Ras Al Khaimah reported decreases of 9 per cent, 8 per cent and 11 per cent. In the third-quarter, declines were more conservative with records showing 4 per cent, 2 per cent and 4 per cent 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 per cent from Dh 48,450,” 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 per cent 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 Dh45 per square foot.