Abu Dhabi rents continue to fall as capital values drop

19/05/2009 – ame info – Rental returns for villas and apartments across Abu Dhabi have fallen in Q1 2009; however a new report says that these remain attractive as the drop had been in line with a lowering of capital values. The fall in rental asking prices comes as many companies lower the accommodation component of employees’ salary packages, as a means of dealing with current market conditions.
A report by UAE-based property services company Asteco has found that, although some property owners have been reluctant to drop asking prices, many - especially expatriate investors - have begun accepting lower rental contracts.
The report finds that expatriate landlords are likely to ask for up to 20% less than their counterparts.