Lease prices fall in Dubai Marina, JLT, Business Bay and Downtown Dubai but remain stable in areas such as the Greens and Silicon Oasis
The official rental index for Dubai has been updated for 2016, with one- and two-bedroom apartments showing a decrease in prices across much of the emirate.
According to the new price brackets suggested by the Real Estate Regulatory Authority (RERA), rents for one-bedroom flats have dropped by between 4.55 percent and 11 percent.
The Dubai Land Department said last year that the RERA index would only be updated once a year, and not every four months. This means the new price brackets suggested by RERA are recommendations for the whole of 2016.
For example, in Business Bay, rental rates now range from AED80,000 ($21,781) to AED105,000 per year, compared with AED90,000 to AED110,000 in 2015 – an 11.11 percent drop, according to an analysis by the Emirates247 website.
Rentals for two-beds in Downtown Dubai are between AED160,000 to AED180,000 per year, a drop of between 5.26 percent to 5.88 percent from a 2015 rental price of between AED170,000 and AED190,000.
Two-beds in Jumeirah Lakes Towers (JLT) fell by between 8.33 percent and 10 percent, it added, with rental rates ranging from AED110,000 to AED135,000 per annum compared with AED120,000 to AED150,000 in 2015.
In International City, rents of two-bedroom apartments have declined by 7.69 percent to 10 percent, with leases for two-bedroom apartments now ranging between AED45,000 and AED60,000 per annum compared to AED50,000 to AED65,000 per year in 2015.
Rents in Dubai Marina are between AED140,000 to AED180,000 per annum, a drop of around 5.26 percent from AED140,000 to AED190,000 in 2015.
Rents in Palm Jumeirah have dropped by up to 5.55 percent with leases ranging from AED170,000 to AED220,000 compared with AED180,000 to AED230,000 in 2015.
Finally, Discovery Gardens, fell 5.88 percent, with rentals between AED70,000 and AED80,000 per annum, compared with AED70,000 to AED85,000 per annum in 2015.
Rents for two-bed apartments remain stable in many freehold areas, including the Greens, Silicon Oasis, Jumeirah Village Circle, Arjan, Dubai Sports City, Dubailand and International Media Production Zone.
The new index better reflects market conditions and makes it harder for landlords to impose arbitrary rental hikes.