A new report predicts that commercial and residential property rents in Dubai will continue to decline this year due to oversupply and rising vacancy rates. 'The real estate market remained sluggish during the final quarter of 2009 with few signs to suggest any imminent upturn in fortunes,' property consultancy firm CB Richard Ellis said in its Dubai MarketView for the fourth quarter of 2009. Lease rates for commercial space in newer areas of Dubai, which have already dropped 50%, are expected to head lower 'as competition for tenants continues to lead landlords towards greater incentive packages', the report said. Residential units are also likely to see 'a further small contraction during the course of the next year as a substantial volume of new residential accommodation reaches the final stages of construction', it said.
http://www.ameinfo.com/
