Rents Stable or Slightly Down during Q4 in Abu Dhabi and Dubai

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(ABU DHABI, UAE) -- These days the news is better for renters than for landlords of residential and commercial properties in Abu Dhabi and Dubai. According to reports issued this week by Asteco, the largest property services company in the country, rents in both of the UAE's biggest cities are either stable or only slightly down.

Residential rents even in Abu Dhabi are tending lower, said Elaine Jones, CEO of Asteco. "Given the slight increase in vacancy levels and the additional supply of residential property in Abu Dhabi, the rental market has shown signs of softening, striking more of a balance between the negotiating power of tenants and landlords," Jones explained.

Apartment rents in Dubai which declined by 24 percent  last year on average remained stable over the last quarter, but perhaps the real news in the reports is that top apartments with gym, swimming pool, and free parking tend to be 20 percent cheaper than in Abu Dhabi. Thus "the number of people working in Abu Dhabi but continuing to live or moving out to Dubai remains noteworthy," Jones added.

Retail rents for ground floor shop units and showrooms in Abu Dhabi have fallen 5-10 percent over the last quarter, although the report states "there is, in many cases, still a mismatch between landlords' rental expectations and those of prospective tenants." In Dubai stable rents in the final quarter came after a decline of 31 percent during the previous nine months.

Demand for offices is limited right now in both cities, the Asteco report notes, and tenants are waiting to see what will happen with the economy in general and with rental prices before taking on more space.

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