Northern emirates to see rents drop

18/08/2011 - Northern Emirates Property & Investment News Posted by Neil King
Northern emirates to see rents drop

Property investors with portfolios in the northern emirates could be tempted to sell up after rents were predicted to fall.According to a recently-published report by CB Richard Ellis (CBRE), while Ras Al Khaimah and Fujairah have suffered slightly Sharjah and Ajman currently feeling the "brunt of Dubai's overhang of space".Indeed, the firm has predicted that over the course of the next year rents could fall by as much as 15 per cent.This could tempt a number of property owners to have their portfolio's valued with a view to selling."Our forecast for the next 12 months is for a further ten to 15 per cent drop in residential rental rates. The biggest declines are expected in Ajman and Umm Al Quwain due to their proximity to Dubai and Sharjah which both have huge volumes of available supply at declining rental rates," the report warned.Matthew Green, CBRE UAE's head of research and consultancy, added: "An ongoing situation of depressed demand and increasing supply is further compounded by the outflow of occupiers to Dubai encouraged by a growing availability of quality, yet affordable accommodation and fears of a prolonged period of infrastructure problems."