Around 25 per cent of residential units in Dubai are lying empty as the impact of the global downturn continues to hit the UAE's property sector, a report said.
Released by real estate company Collier, the report said 71 per cent of the respondents believed that prices had still not reach the bottom.
Developers, however, revealed that only 18 per cent had suspended sales in projects until the market showed signs of recovery.
The current vacancy rate for both residential and office accommodation in the UAE was 25 per cent, Colliers said, adding residential rents were down by 49 per cent in this year's third quarter as compared to the same period last year.
Average asking prices in Dubai residential sales also fell by 12 per cent from the first quarter to the third quarter this year. "It's going to be a long and slow recovery," Director of Research, JP Grobbelaar said.
Asked on the falling office rents, Grobbelaar said "If I were a landlord I would rent my property to the first person who could pay the rent because they are going to decline."
The report said around 3,40,000 residential units will come up in Dubai by the end of this year, and Colliers saw another 75,000 being completed over the next two years. However, the prices would only start to recover once the demand exceeded supply.
