Dubai’s real estate market showed little signs of any imminent upturn in fortunes as it remained sluggish during the final quarter of 2009, with lease rates continuing to fall, CB Richard Ellis said.
According to the Dubai Land Department statistics, total transactions fell 17.7 percent to 520 in the fourth quarter from the year-ago period, the brokerage said.
According to CB Richard Ellis, lease rates for Dubai’s residential units may see a small contraction through 2010 as a substantial volume of new homes reach their final stage of construction.
Lease rates for Dubai’s commercial office space market have already bottomed out, with rents in some cases reflecting 2005 levels, the brokerage said, adding that rates in the central business district area are unlikely to see any marked shift given limited new supply over the short term. Still, newer commercial office areas that are already seeing high vacancy rates may see rates dip further as landlords continue to give greater incentive packages as they compete to woo tenants, CB Richard Ellis said.
Apartment rates are also likely to see a small drop this year, they added.