Posted by Bob Brunskill
An increased supply of high quality, affordable accommodation, particularly in the apartment sector, provided the catalyst for considerable tenant movement across Dubai in the fourth quarter of 2010.
That is according to property management company Asteco, which said that the real estate market in Dubai has recently been characterised by a large supply of high quality stock at affordable rates, leading to a "flight-to-quality trend" across the emirate.
In addition, the firm noted that apartment rental rates declined by just three per cent during the final quarter of 2010.
This was the lowest quarter-on-quarter fall during the year and, according to Asteco, should be viewed as an indication that the market is showing signs of stabilisation.
Elaine Jones, chief executive officer of Asteco, observed that the fall in apartment rates had "brought a number of upscale developments within the reach of mid-income budgets".
Earlier this week, meanwhile, Cluttons, a real estate specialist with a dedicated presence in the Middle East, predicted that Dubai's real estate sector is set to witness "better times ahead", marked by the slow migration of large multinational firms into the emirate.