Dubai’s Real Estate Regulatory Agency (RERA) updated the official rental index for apartments and houses in the city. Rentals of apartments in The Greens rose the highest of all areas. The two communities that saw the highest transaction activity and price increases in 2012 were Dubai Marina and Downtown Dubai.
The latest 2013 rental index update indicates that the cost of renting a studio, one- and two-bed apartment in Emaar’s community, The Greens, rose by 22 per cent, 15 per cent and 28 per cent, respectively.
The rental index, which is updated thrice a year, estimates current rents for studios between Dh45,000 and Dh55,000 per annum compared to Dh35,000 to Dh55,000 stated in 2012’s last index update.
One-beds are now available for Dh55,000 to Dh75,000 pa (Dh50,000-Dh65,000 pa, 2012), while two-beds are being leased for Dh90,000 to Dh110,000 pa (Dh70,000-Dh110,000, 2012).
Dubai Marina saw rentals jump by 18 per cent for two-bed apartments with annual leases starting from Dh70,000 to Dh130,000 pa (Dh70,000-Dh110,000 pa, 2012).
In Downtown Dubai, the cost of leasing two-beds ranges between Dh110,000 and Dh140,000 pa (Dh95,000-Dh120,000, 2012), an increase of 16 per cent. However, these estimates are for high season and during the summer months, great bargains could be found.
Rentals for one-bed apartments on Palm Jumeirah are priced between Dh75,000 and Dh120,000 pa (Dh75,000 to Dh115,000, 2012). It seems now it is more affordable to live on the Palm than previously.
Rental prices for a one-bed apartment in Discovery Gardens stand at Dh35,000-45,000 pa (Dh30,000-45,000 pa, 2012). Low-budget housing demand rises and this is a great indicator for developers planning to launch new projects.
Although not mandatory to be followed, the index aims to provide landlords and tenants a guideline to rent pricing. This year’s rental index looks pretty very much align with the listings one may find at the real estate listings websites.
Rents in Jumeirah Beach Residence rose by 12.5 per cent for one-beds and are priced between Dh65,000 and Dh90,000 pa (Dh60,000-Dh80,000 pa, 2012). This may be largely attributed to the variety of lifestyle facilities situated along the Jumeirah Walk as these attract mainly young population with active social lifestyle.
In Jumeirah Lakes Towers, one-beds range between Dh50,000 and Dh65,000 pa, an increase of 7.7 per cent over the last index. Once again, lower-budget housing aimed at the tenants with middle-level of income proves to be more successful at the present economic environment.