Dubai Rental Rates Fall 30% in August, another Blow to Property Market

UK 24 August 2009Another day another report on the Dubai property market; this time a report from Landmark advisory has found that rents in Dubai continued to fall in August, by as much as 30%.

This is yet more worrying news for Dubai, and comes after weeks of conflicting reports on whether property prices in Dubai may have fallen far enough to call a bottom. With two reports this week into the 28,000 unsold (and unsaleable) units in Dubai, and now rents falling by such a large percentage it may be just a little bit too early to say the misery is over.

The real estate consultancy firm said the cost of leasing apartments in Discovery Gardens, International City, Palm Jumeirah, JLT and JBR fell by between 10-30 percent since March.

Worst hit were 2-bed apartments on Palm Jumeirah, followed by 2-beds in International City which have fallen 23 percent.

This is yet another damaging blow to Dubai's property market, as it will make anyone considering a property investment in the emirate think twice about what kind of income they can count on from the rental of their property.

I have to say I am with our Liam Bailey, who believes the only chance the Dubai property market has is to reinvent itself. I think maybe as a wonder of the modern world because of all the fancy buildings, i.e. the man-made island, and become a hot favourite with lifestyle investors.