Expatriates living and owning property in Dubai have begun to cut the amount they charge for rent in an effort to boost demand, it has been revealed.
New figures have shown that while local investors have so far been unwilling to lower their rents, expatriates have been more accommodating and flexible in responding to the global economic slowdown.
Some expatriates have been willing to reduce their rental prices by as much as 20 per cent in order to ensure they can attract new business to the area during the worldwide recession.
However, despite the moves from expatriates, the research from Dubai-based property consultants Asteco shows that rental yields in the Gulf remain strong.
Many people owning properties in the Gulf may have taken out expat insurance before heading to the region, providing them with a safety net should anything go wrong while living there.
The global economic recession has begun to affect Dubai and the other Gulf states, following the collapse in the banking industry at the end of 2008.
Several international banks, including the UK’s RBS and HBOS, had to be bailed out by their governments in order to keep them from going out of business altogether.