Dubai rentals 'levelled off' during 2008

Rental rates for apartments in Dubai levelled off during the course of last year, a new study has concluded.

Asteco's research report for the fourth quarter of 2008 found that average growth for such properties in the emirate was four per cent, putting rental rates for a one-bedroom apartment at AED123,000 (GBP22,400), while three-bed properties generated rates of AED243,000.

The firm noted that the rental market in the region has seen a boost since some banks suspended loan issuance, as this meant landlords relaxed payment terms, giving tenants the opportunity to pay their rent in smaller, more frequent amounts.

Noting that there has been a move from a speculator-driven property market to one that benefits end users, managing director of Asteco Andrew Chambers said: "This shift could potentially lead to improved project planning, which in turn will limit construction delays and assure timely delivery of quality developments."

The Dubai Real Estate Regulatory Agency is currently in the process of producing new plans for the emirate's property sector, which it hopes will restore the confidence of those considering making a purchase in the region.

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