Rental decline spreads to Dubai’s non-freehold areas

Dubai: Once confined to Dubai’s prime freehold communities, rental declines are now starting to show up elsewhere in the city, according to the latest update from the real estate consultancy CBRE. In particular, high-density rental locations such as Al Barsha, Oud Metha and Bur Dubai have witnessed some partial easing in the latest quarter. (But it is not happening across the board, with demand remaining strong in Al Ghusais and in the areas adjoining Sharjah.) Other market sources too have been stating similar sentiments, saying that vacancies are starting to show up more regularly and landlords being forced to lower their asking rents to get new tenants. If not, the same properties end up lying unoccupied for far longer periods than the average.

Another particular favourite for budget rentals — International City — too has felt the squeeze, but brought on by a significant increase in the number of new units being delivered there.

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