Residential rents in Ajman have dropped by 20 per cent in the first half of 2009, and may fall further as new supply enters market in the short term, according to a new report.

"Overall residential lease rates have fallen by nearly 20 per cent with some units declining over 35 per cent. Lease rates are likely to experience further downward pressure as significant new supply enters the market in the short term.

With supply already outstripping demand, tenants are likely to benefit from an increase in options while also being offered more favourable terms from landlords," Matthew Green, Head of Research and Consultancy, the UAE, for CB Richard Ellis Middle East, said in the first half report on Northern Emirates.

"Increasingly attractive incentives have become more common as landlords try to retain high occupancy rates in the face of deteriorating conditions."
 

Ajman sees 20% drop in H1 residential rents