Dubai rents to decline in 2010

This year will be one of "selective stability", as increased vacancies force prices down across the market, according to the latest report from Jones Lang Lasalle.

Some of the highlights:

• Nearly $15 billion worth of residential projects were put on hold or cancelled in 2009
• An additional 24,000 units will come on the market this year
• Residential transactions increased by 14 per cent in the last six months, but are still down by 19 per cent since Q4 2008
• From JLL: "Despite stabilization in both pricing levels and transactional volume, Dubai's residential market will experience a situation of over-supply and prices are not expected to recover fully before 2011 at the earliest"
  
• Average price per square foot in Dubai is Dh882 per square foot
  
• Citywide vacancies for office space have increased to around 33 per cent of 43.6 million square feet
• Commercial rents declined by 44 per cent between Q4 2008 and Q42009 to Dh200-250 per square foot
  
• Average retail rents have declined by around 29 per cent