EXCLUSIVE: Dubai rents drop in new RERA index

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Apartment rents in Dubai have fallen in many areas of the city in the past six months, according to the latest guidelines published by the Real Estate Regulatory Agency (RERA), Arabian Business can reveal.

Minimum rental values have dropped by as much as nearly 30 percent in RERA's updated index for tenants and landlords which was last published in April.

However the rate of decline in values has slowed compared to the fall between the December 2008 and April 2009 RERA indices, when rents dropped by up to 50 percent in some areas.

A studio apartment in Jumeirah Lake Towers (JLT) is among the sharpest fallers with rental guides for October between AED40-70,000, compared to a minimum of AED60,000 in April.

Rents have also fallen by at least 10 percent for some apartment types in the Downtown area, the Greens, Palm Jumeirah, Al Barsha and Jumeirah Beach Residence, according to Arabian Business calculations taken from the RETRA website on Thursday.

But, a different story seems to have emerged regarding villa rents with many areas of Dubai holding their rental values compared to April, or even increasing them.

Fore example, RERA's rental guide for a three-bed villa on Palm Jumeirah in April was AED250-280,000 but this figure has now risen to AED270-300,000. Meanwhile, villa rents in the Springs, Meadows and Umm Suqeim were unchanged, compared to the previous RERA index.

Earlier this week, an Asteco report showed that rental values for apartments in Dubai continued to fall faster than in any other part of the UAE during the third quarter of 2009.

Three-bed homes were worst hit as they plummeted 13 percent between July and September, the report said.

Dubai also saw the largest drop in rent for two-bed apartments with values down eight percent, Asteco added.

In June, Landmark Advisory said that it expectsed further decreases in Dubai rents for the third quarter but that there were signs that rents are stabilising. Apartment rent examples from the RERA website:

The rent for a studio apartment in International City is in the range AED30-35,000 per year, compared to AED35-45,000 in April.

The rent for a one bedroom apartment in Discovery Gardens is in the range AED55-65,000 per year, compared to AED60-70,000 in April.

The rent for a one bedroom apartment in Dubai Tower/Down Town is in the range AED70-110,000 per year, compared to AED100-165,000 in April.

The rent for a two bedroom apartment in Greens is in the range AED100-130,000 per year, compared to AED120-140,000 in April.

The rent for a studio apartment in JLT is in the range AED40-70,000 per year, compared to AED60-70,000 in April.

The rent for a two bedroom apartment in Palm Jumeirah is in the range AED130-165,000 per year, compared to AED160-200,000 in April.

The rent for a one bedroom apartment in Dubai Marina is in the range AED70-110,000 per year, compared to AED80-120,000 in April.

The rent for a two bedroom apartment in Al Barsha is in the range AED75-90,000 per year, compared to AED95-115,000 in April.

The rent for a one bedroom apartment in Jumeirah Beach Residence is in the range AED80-100,000 per year, compared to AED100-125,000 in April.

The rent for a studio apartment in Mirdiff is in the range AED35-45,000 per year, compared to AED45-65,000 in April.

Villa rent examples:

The rent for a three bedroom villa in Palm Jumeirah is in the range AED270-300,000 per year, compared to AED250-280,000 in April.

The rent for a four bedroom villa in Arabian Ranches is in the range AED200-240,000 per year, compared to AED220-250,000 in April.

The rent for a three bedroom villa in Springs is in the range AED140-160,000 per year, unchanged from April.

The rent for a four bedroom villa in Meadows is in the range AED220-240,000 per year, unchanged from April.

The rent for a five bedroom villa in Umm Suqeim is in the range AED290-360,000 per year, unchanged from April.

Related:
Topics
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: MM

deepa, i dont think you should let him take you on a ride. do file a case at rera. he seems to ignore the law that was passed which mentioned no rent increase unless u r below the 25% of rera index. When we all keep quiet, the landlords will abuse us. The minute u say u r leaving, he will panic because these days with so many brand new apartments, he will suffer getting tenants unless u live in like business district where people doont like to move to new dubai areas. But do file a case.

Posted by: deepa

last year we had filed case against the landlord as he had increased 100% than7 months the case went on in couret at last the landlord offered us outside settlement through comprimise he increased 10% only and told us to withdraw the case plus he never gave us the money which we paid for case that was almost 1900. this year again he is increasing 10% so i would like to know is there any rule or law that allows them to increse everyyear even after filing case are these people not afraid of law. i want to know can these people increase rent everyyear please answer.

Posted by: Jesmin Fernando

We have being living in Dubai for last 6 years in Al Hudaiba buildings.The accomadation was provided by my husbands company,recently he lost his job and we had to transfer the flat on my name. We applied for flat transfer and they increased the flat rent by 50% . The Company paid 43,000/ and now they increased to 85,000. Is this possible and is there any justification. We understand there is a market value.but itnis difficult to absorb when someone lost the job and find their own accomation whilst we have to pay for the accomadation as well.

Posted by: Dod

Adam, good points. USD55,000 plus for an ordinary 4 bedroomed villa makes no sense. Any ordinary family will only pay this for a short time and if he is forced to. For the sake of Dubai's competitiveness and viability rents must reduce towards the old rates you quote. After 2003 rents went loopy as there was a supply bottleneck as demand increased. The bottleneck is now relieved and rents will and must keep falling

Posted by: Mohd Ibh

What are the current rates for KARAMA and BUR DUBAI? I fail to understand why RERA have NOT taken into consideration that thousands of tenants in these areas are being over charged for a one / two bedroom flat with NO facilities like swimming pool,parking,gym,central a/c etc. Why should these building landlords charge the same rates as the more posh and furnished apartments with central a/c, parking and all facilities. Go out and survey the market - and take tenants woes seriously! How can RERA know what is going in the market if they never step out of their offices and mansions? RERA - get your act together - PLEASE!!!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Mall talk

Mall talk

Plans for Dubai’s Mall of the World have made headlines all over...

1
Time to invest?

Time to invest?

Foreign investors are seeing Qatar as an ideal place to purchase...

1
Heading for a correction?

Heading for a correction?

Property prices may have held relatively steady in Lebanon during...

1
Most Discussed