Dubai rent declines to 'intensify'; Abu Dhabi market conditions to worsen - report | ZAWYA MENA Edition:
Residential and commercial rent declines in Dubai are likely to “intensify”, while market conditions in Abu Dhabi could “worsen” with declining demand due to the coronavirus pandemic.
In its latest market analysis, Asteco, a real estate consultancy firm, cautioned against a rise in repatriation of expatriates, as well as an increase in tenants downsizing, which could both have a negative impact on demand for accommodation.
So far, leasing rates for apartments, villas and offices in Dubai plunged by 13 percent, 10 percent and 13 percent, respectively, in June compared to a year earlier.
“This pattern is likely to prevail, or even intensify due to the expected volume of additional supply, combined with a potentially sharp drop in demand in the short to medium term due to the impact of COVID on employment,” Asteco said.
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