The May 2009 rental guide released by Landmark Advisory, a real estate services company, says that while the city-wide average rents fell in Dubai, a few areas have begun to stabilise.

For example, after declining precipitously in the last quarter of 2008 and the first quarter of 2009, rents in the Springs declined  in April. The lowest available rent for a 2-bedroom Springs villa increased by Dh5,000 ($1360) to Dh95,000 ($25,860) per year.

“In this area, tenants flocked to take advantage of opportunities created by steep rent declines,” said Jesse Downs, director of research & advisory services, Landmark Advisory. “In addition, rents for 2-bedroom apartments in Dubai Marina have also begun to stabilise.”

“In some areas, prices can range rather significantly,” said Downs.

“This is due to an observed willingness by many end-users to pay significantly higher rents for preferred locations with higher-quality properties with good reputations for maintenance, amenities, and the surrounding retail mix,” she added.

The ranges are meant to indicate high-low rent spreads, not exact figures. Downs explained that “readers should use the rental guide to define minimum and maximum rent expectations according to the level of unit and location quality in a given area.”

Despite relative stability in certain areas, many rents continued to fall, creating opportunities for tenants eager to upgrade to larger, higher-quality, and/or better-located units. For example, villas and apartments on the Palm Jumeirah and in Arabian Ranches are now renting for substantially less than two months ago.

“Dubai tenants will see even more opportunities to upgrade their accommodation as rents will continue to fall,” said Downs.

However, high-demand areas will experience a faster rent rebound as deal-seekers rush in.

Downs recommended that tenants looking to upgrade “should carefully consider their timing in order to balance likely rent discounts with the high probability of competition over available units.” – TradeArabia News Service