More evidence that it has been an up and down kind of year for the Dubai property market comes from propertyfinder.ae – which shows two very opposing results for luxury villa communities Arabian Ranches and Emirates Hills.
According to the leading real estate portal, in the first six months of 2016 Arabian Ranches rents have gone up by a significant 6 per cent. The average villa lease price in January at the gated community was AED 250,000 per year. In July this had risen to an average of AED 265,000 per year.
Just 15 kilometres across town in the upscale Emirates Hills district, there has been a very different story. Rents there have dropped a huge 12.50% from an average of AED 1.2 million per year in January, to an average of AED 1.05 million per year in July.
Due to the side effects of the slashed oil prices and other economic factors, it is not too surprising that Emirates Hills – one of Dubai’s most glamorous communities – was effected. However, rents dropping by over 12 per cent in just six months is an attention grabber.
It may be that Arabian Ranches – also an upscale community, but to a lesser degree – is seeing an upturn in fortunes as renters with plenty of cash are deciding to spend it slightly more cautiously.
The search results statistics bear out this theory with Arabian Ranches being number one of the top ten most viewed communities for rental villas in July – while Emirates Hills did not appear on the top ten at all.