Dubai rents to fall as expats leave

Rents and occupancy rates in Dubai will fall in 2009 as expatriates leave the Gulf Arab region's business hub as a result of the global economic downturn, CB Richard Ellis said on Thursday.

Dubai's once-booming property sector is suffering a sharp slowdown, with property prices tumbling 41 per cent in the first three months of 2009, according to property consultants Colliers. The slowdown has led to project cancellations worth billions of dollars and jobs being slashed.

"The drop in demand for commercial and rental space, following the decline in an expatriate workforce, will have a significant impact on the lease and occupancy rates in all areas of Dubai throughout 2009," the real estate services firm said in a report.