Residential rental rates in Dubai slumped 41% in 2009, according to the latest quarterly report by CB Richard Ellis.

The report noted that tenants are taking advantage of changing market conditions, and that landlords are now offering “rent free periods, inclusion of service charges, and multiple cheques”.

'Prices are still holding in the historic residential areas of Bur Dubai and Karama compared to the newer residential districts such as Al Barsha,' the report added.