Falling Dubai rents spark population move
26/04/2009 by: Anwar“We are seeing major population shifts from other emirates to Dubai as well as different areas within Dubai,” Jesse Downs, director of research and advisory services at Landmark Advisory, was quoted saying in Emirates Business on Sunday.
“This is primarily due to individuals looking to upgrade in terms of quality, location and size of apartments and villas.”
She said there are “massive” shifts from Sharjah to the International City and Discovery Gardens neighbourhoods in Dubai, the UAE daily newspaper reported.
Last month Egyptian investment bank EFG-Hermes estimated Dubai property prices will come down 50 to 60 percent by the end of this year from the their mid-2008 peak and have already fallen by 34 percent.
Camilla Van der Merwe, head of leasing at Asteco Property Management, said people of all income brackets are finding alternative accommodation or renegotiating their contracts.
“If we take a family living in a two-bedroom apartment in Dubai Marina, the average rent they paid last year was approximately 150,000 dirhams ($40,838),” she said.
“Now they can rent a two-bedroom villa at Arabian Ranches for 130,000 dirhams or alternatively they can rent a three-bedroom villa in Mirdiff for 140,000 dirhams.”
Maktoob