Home rental rates sliding in northern emirates

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Rental rates fell 18 per cent in the northern emirates in the first half of the year as more projects were completed, increasing the options for tenants.

The biggest drops were in Ajman, where rents fell 28 per cent from a year earlier, CB Richard Ellis reported. In Umm Al Qaiwain rents fell 22 per cent, while rates slipped by 21 per cent in Sharjah and 15 per cent in Ras al Khaimah.

Declining rates in Dubai is creating a "sustained migration of residents" to the larger emirate, CBRE reported.

Older projects in the northern emirates were particularly hard hit, CBRE reported. Newer masterplanned and gated community developments are "outperforming the wider market with significant premiums being achieved", the firm said.

"As more residential units enter the market, the importance of providing adequate facilities and amenities has become increasingly clear," the report said.

With more projects scheduled for completion, "a further increase in vacancy levels should be expected over the next six months," driving down rates even further, the firm predicted.