Dubai is expected to have 30,600 empty homes by the end of year as more buildings are completed and the population shrinks, a new report shows, adding to concerns about a recovery in the emirate's troubled property sector.Abu Dhabi faces a shortage of 28,000 residential units, UAE daily Emirates Business reported on Thursday, citing a JP Morgan report.
The report said that beyond 2009, the forecast of 3.5 percent population growth for Dubai is unlikely to absorb the upcoming supply of residential units.
While Dubai has been harder hit in the economic downturn, oil-rich Abu Dhabi is using its vast wealth to press ahead with infrastructure projects, albeit at a slower pace.
“In the short term, we expect the non-residential sector in the UAE to remain under pressure given the global financial crisis. However, the historical shortage of both retail and commercial space in Abu Dhabi has kept falls in leasing rates well below Dubai," the investment bank noted.
Rents in Dubai have fallen by more than half in some areas since their 2008 peaks, but areas closer to the Abu Dhabi border have seen occupancy levels rise as renters from the UAE capital move there to take advantage of lower rents.
Source: MB
2 comments:
Yet in some areas the rents are not getting any better. On the other hand there is a rumour that the market is getting better.
true ... in some areas owners would rather have their appartments empty than to reduce their prices.
as for the market getting better ... i don't think it's anytime this year ... 2010 might carry some changes, but no big deal.
the getting better rumor is a must to attract customers and investors but for real this ain't true.
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