Rents in upscale Dubai neighbourhoods have declined appreciably but continue to be high in all other areas, according to a report.
Prices in mid-market locations, which had dropped in the past nine months, have stabilised, said the report from Reidin-GCP.
Rents across Dubai are down six per cent following 10 per cent declines in property values that freehold areas have experienced since mid-2014.
Neighbourhoods including Downtown, Jumeirah, Al Wasl and Dubai Marina are down by a wider margin when compared with Sports City, Discovery Gardens and traditional sub-markets of Karama, Bur Dubai and others, making rentals unlikely to drop to 2011-12 levels.
“At the top end, there has been a correction across the board, both in the villa/town house only locations and in the super-premium apartment towers in Downtown and Dubai Marina,” said Sameer Lakhani, Managing Director of Global Capital Partners. “In these communities, we have witnessed rental corrections of 10 to 12 percent.”