Tenant Alarm 2012 Dubai Apartments Rent Rise To Carry On This Year
Average apartment rents in Dubai rose 17 per cent in 2012 compared to last year, outshining the villa market, which found an increase of 14 per cent, according to CB Richard Ellis (CBRE).
The consultancy needs the home sector to keep its upward tendency for sales and renting rates, but is unlikely to fit the 2012 operation.
"Residential rental rates improved by 16 per cent throughout 2012, with typical apartment rent rates climbing 17 per cent year-on-year and ten per cent quarter-on-quarter," the international real-estate adviser said in its fourth quarter report on the Dubai home market This is the first time in the past several years that apartment rents rose more than the villa rents.
"After several years of sustained declines, renewed confidence has returned to the sector, driven predominantly by increasing activity from cash investors. Dubai continues to dominate the region as the major investment destination with its safe haven status firmly cemented," the report pointed out.
CBRE expects fresh supply of almost 36,000 new residential units next 36 months with the bulk of upcoming supply is predicted from extra locations in Motor City, Dubai Sports City, Liwan and Dubailand Dwellings.
Average office rents dropped by four per cent a year ago as quantity of tenants moved from older properties to newer, better quality structures.
Though some offices in prime places managed to increase their headline rents, Company Bay and Dubai Silicon Oasis continued to suffer from high vacancy rates.
"Strata title office buildings area still considered unattractive by most large occupiers and corporate tenants due to the complexities of multiple ownership across the property and the resulting inefficiencies this creates," CBRE added.
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