The second half of 2010 followed the same pattern as the first in the Northern Emirates property market
with little demand for new residential or office properties, according to a new report.
CB Richard Ellis said that rents and prices in the region are continuing their downward spiral as a result of the lack of interest.
The property consultant added that the performance of individual Emirates has continued to "fluctuate widely" with Sharjah and Ajman currently feeling the worst of the overhang of space in Dubai.
"An ongoing situation of depressed demand and increasing supply is further compounded by the outflow of occupiers to Dubai encouraged by a growing availability
of quality, yet affordable accommodation and fears of a prolonged period of infrastructure problems," CB Richard Ellis explained.
Indeed, according to the company, the average apartment lease rates across the Northern Emirates have dropped by 17 per cent since the second half of 2009. Added to this, the volume of residential stock in the development pipeline will lead to further rental declines.
- Friday 04 February 2011