Further fall seen in rental rates

No impacts to me directly as our house is provided by company. However, this fall will at least arrest inflation. Those who are provided with housing allowance will have windfall profit from reduced rental rates.

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Residential rental rates in Doha have fallen as much as 45% from their peak in 2008 and are likely to fall further due to oversupply, a report published yesterday said. Rents in Doha fell by 20% to 30% last year after population growth slowed in the state due to the financial crisis, property consultant DTZ said in its report.

“Average rental prices for luxury apartments have reduced further by 10% to 15% over the first quarter of the year with supply continuing to outstrip demand,” DTZ said. Average office rents have dived between 20% to 30% thanks to oversupply, Nick Witty, chief operating officer of DTZ’s Middle East operations, told Zawya Dow Jones on the sidelines of a real-estate conference in Doha.(Gulf Times, May 2010)

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