Falling demand brings slide in Dubai rental prices

A lack of demand has seen the cost of renting property in Dubai fall by up to a third during the last two months, it has been claimed.

According to Nehad Abdelhamit, consultant at Dubai Waterfront Properties (DWP), annual rents for a two-bedroom villa in some of the emirate's most prestigious locations have dropped by almost 33 per cent, Arabian Business reports.

The flood of homeowners adding their houses to the rental market has been cited as a reason behind the falling prices.

"Most of the properties are not selling, so they are renting them instead to secure an income. People have got mortgages to pay," Ms Abdelhamit told the news source.

And Farida Khan, also of DWP, shared her opinion, stating: "There is so much stock available and much less demand."

The news follows the recent announcement that credit firm Moody's Investors Service is assessing its position on state-owned Dubai developer Emaar Properties.