Asteco put out an interesting historical account of rental rates in Dubai today as part of their 25th anniversary. The company started in 1985 with the Al Muraqqabat apartments as its first leasing and management contract.

Back then, rents for a studio in the building were Dh9,500 a year; one-bedroom apartments were Dh11,000; two-bedrooms were Dh17,000; and three-bedrooms were Dh25,000. For the next 10 years, "there was little, if any, change in rents of the properties even though Dubai suffered economic hardship due to lack of trade during the Iran-Iraq war between 1980 and 1988".

Then things started heating up in 1995 until 1998, when the world was hit by the Asian financial crisis, declining oil prices and the dot com bubble. The following few years saw even more declines.

Photo caption: The Al Muraqqabat apartment building in the old days. Courtesy of Asteco

But in 2007, something got out of whack. Demand began outpacing supply. Economic growth was gaining momentum. In 2008, with oil prices peaking at $147 a barrel, a studio apartment in Al Muraqqabat hit Dh36,000.

Then, as current residents are well aware, the property bubble burst in late 2008. A studio in the old building has fallen back to about Dh24,000 by 2010.

A delightful little look at rents from the perspective of a small building in Deira. I'm sure the fluctuations for other parts of town would be even more dramatic.

Here's a quote from Elaine Jones, chief executive of Asteco:

"The varying rent levels over the past 25 years have reflected the impact of fluctuations in the world economy, oil prices, wars and conflicts as well as the effects of more recent heated growth in the local economy... We have been involved with many of the buildings that have shaped and defined Dubai and the UAE and the ups and downs of these property prices provide the documentary evidence that we are living in a global village."