Dubai rents fall 39 pct in Q3 -CBRE

Dubai rental rates are expected to fall more in the fourth quarter after being under pressure in the third and vacancy ratios are expected to increase, real estate consultancy CB Richard Ellis said on Tuesday.

“The short-term outlook for both residential and commercial properties in Dubai is likely to remain slow-moving,” Matthew Green, associate director of CBRE, said in a statement.

The report said the drop in residential lease rates averaged 39 percent year-on-year in the third quarter. Some locations, such as Al Barsha, saw a decline of 48 percent.

Newly developed areas, such as Jumeirah Lake Towers, are “faring comparatively badly in the downturn”.

CBRE said office lease rates in Dubai’s central business district had fallen about 55 percent year-on-year, while secondary and newly developed business districts saw an average fall of 67 percent.

“The market continues to seek signs of stabilisation amid hopes of a modest recovery in fortunes during 2010,” CBRE said.