Real estate firm: Dubai rents drop 23 pct in 1Q

New research has shown Dubai residential rental prices dropped 23 percent in the first quarter of 2009 as the economic downturn forced foreign workers to pull out of the fast-expanding city.

Thursday's report by real estate company CB Richard Ellis has attributed the decline to job losses among expatriates, a drop in tourism and a considerable new supply of homes.

CBRE says the biggest declines have been in the newest developments built for job-seeking foreigners who had flooded into the oil-rich Persian Gulf's business and tourism capital during the boom years.

Prices in state-owned developer Nakheel's Discovery Gardens took the biggest hit, with rents falling by a third since late last year.