Published: 9th September 2013
The property market in the UAE is continuing to struggle according to new figures released by Jones Lang Lasalle, one of the leading Emirates estate agents. The issues stem from considerable oversupply in the Dubai property market, which is continuing to see new properties coming on line, as well add considerable drops in the Abu Dhabi rental market.
The issue of oversupply in the Dubai property market is not a new one, however with the figures showing over 18,000 new properties being available for occupancy in Dubai by the end of the year, the issue is likely to remain for the foreseeable future. The figures also showed that the cost to rent a property in Abu Dhabi dropped by over 9% in the first quarter of 2011, reflecting a slowdown in demand for rental property throughout the UAE region.
In a separate report from the property management company Asteco, the prices of rental property in Dubai fell by over 9% with the price of sales property falling by 4%. Elaine Jones, CEO of Asteco, said "The downward trend is unlikely to change in the short term due to further prime stock entering the market across a number of key landmark developments in the second half of the year.”
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