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21-10-12

CBRE sees Dubai rents on growth trend

(MENAFN) A new report released by CBRE expected Dubai residential real estate market to remain in mixed patterns of growth, depending on the location and product, during the final quarter of 2012 and into 2013, Arabian Business reported. Dubai's property rentals showed growth during the third quarter, although for many areas, increases remained marginal, the report said. Overall, CBRE said residential rents had risen by up to five percent in the last three months. The report noted that although the real estate market is usually relatively weaker through the summer and Ramadan periods, this year the residential market was very active, with apartment and villa lease rates increasing by around 6 percent and 4 percent respectively. This was driven by the continued influx of a quality workforce and the relocation of tenants from neighbouring emirates, the report added. As for the office property in the Gulf emirate, the sector continues to suffer from "widespread oversupply", with central business district (CBD) rents down by four percent in Q3, CBRE said. "The drop in CBD lease rates is attributed to a substantial increase in new stock rather than a reflection of the emirate's current business environment," the report said. The report forecasted rental and occupancy rates to see further deflation over the remainder of 2012, as a result of existing vacancies and looming fresh stock. The report added that Prime assets in central areas will hold, underpinned by solid occupancy performance and strong demand.

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