Dubai apartment rents down 30% in last year
Apartment rents in some of Dubai's most popular areas have fallen by about 30% in the last 12 months but villa rents are largely stable, it has been revealed.
The latest figures from the emirate’s Real Estate Regulatory Agency show that apartment rents in Dubai Marina, Palm Jumeirah, Discovery Gardens, and Jumeirah Beach Residences have all seen significant falls.
Prices for a one bed apartment in Discovery Gardens, which houses about 41,000, currently stand at AED40,000 to AED50,000 in the latest index, compared to AED55,000 to AED65,000 a year earlier.
The Rental Index is designed to give landlords and tenants in the emirate a guideline to pricing rents when negotiating contracts. The index is presented in the form of an online rent calculator on RERA's website.
Dubai Marina, which is consistently voted the most popular for would be buyers and tenants, also saw a big fall in rents. Rents for a studio in the Marina start at AED35,000, down AED10,000 compared to the March 2010 index, while minimum rents for a one bed have fallen more than 30% to AED45,000.
Apartments on Palm Jumeirah have also witnessed a significant drop, with minimum rents of AED60,000 quoted, compared to AED90,000 in March last year. Two bed apartments have seen rents fall AED40,000 to AED90,000, RERA said in its online guide which takes the form of a rent calculator.
Falls of 20% plus were also seen in The Greens where the top price for a two bed has fallen from AED130,000 to AED90,000. Rents also dropped in Jumeirah Beach Residence, down AED5,000 for a one bed apartment and in Jumeirah Lake Towers where the minimum rents for a studio fell by AED12,000 to AED28,000.
Studio apartments in International City were among the lowest rental values, according to the RERA guide, starting at just AED15,000, down AED10,000 from March 2010.
Villa rents have also declined in the past year but some areas have witnessed a stabilisation in values, the RERA guide added. Rents for a four bed villa on Palm Jumeirah remained stable at AED300,000 to AED350,000, as did rents for a three bed villa in The Meadows at AED170,000 to AED210,000.
However, other areas of Dubai still saw declines with the minimum rent for a two bed villa in The Springs down AED20,000 to AED70,000 and minimum rents for a four bed villa in Arabian Ranches now start at AED160,000, some 25% lower than in March last year.