Dubai rents to rise just 5% in 2009: EFG

source Arabian Business

Rental growth in Dubai will slow down significantly in 2009 as a result of fewer expatriate workers entering the economy, EFG-Hermes said on Sunday.

The Egyptian investment bank said in a research note rents in the emirate would rise just five percent next year, compared to 15 percent this year.

EFG said key drivers of Dubai's economy such as tourism, finance and construction would be hit by the global economic downturn.
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However, it said the moderation in rental growth would be partly offset by lower confidence in the property market as more people looked to rent rather than buy.

EFG said elsewhere in the Gulf rents would keep rising in 2009 at the same rate as this year, fuelled by ongoing government investment programmes.

It said this was particularly be the case in Saudi Arabia and Abu Dhabi, which were both at relatively early stages of their investment programmes.

Saudi rental growth is expected to stabilise at 18 percent, while Abu Dhabi rents are predicted to rise by 10 to 15 percent next year, the bank said.