The rents in Dubai have fallen as much as 11percent, while Abu Dhabi has noticed rentals falling by six percent during the third quarter, said the Q3 property report by Asteco.
The cheapest single bedroom flats worth Dh.30,000 to Dh.40,000 were found in Khalifa Cities A and B and Mohammad Bin Zayed (MBZ) city in Mussafah, Abu Dhabi, although they were of low-quality comparatively.
In prime properties, even the cheapest single bedroom flats may cost Dh.40,000 to Dh.50000. But, such properties falling in this range, are also available in Khalifa A and B.
However, properties in Dubai are most affordable, as rents in Dubai are cheaper than in Abu Dhabi, says Vineet Kumar, Head of Business Development, Asteco Property Management in Dubai.
For instance, a single bedroom flat in a new building centrally located in an established area in the capital may be rented for Dh.90,000 to Dh.100,000 per annum, while the same property in Dubai will be rented for Dh.70,000 to Dh.75,000, he pointed out.
However, according to the Asteco report, Abu Dhabi has already shown signs of stabilization. Rentals in Abu Dhabi registered six percent decrease on an average during the third quarter, which is smaller than 8percent and 9percent declines recorded during previous two quarters.
Several units have been delivered to the market, and this may have a downward effect on rentals. The most significant among these is the Al Zeina project at Al Raha Beach with 952 apartments,124 villas, 26 penthouses and 119 townhouses, the report said.