2009 rental index prices revealed

Dubai rental index prices revealed as experts say thousands will be hit by rent rises in 2009.
2009 rental index prices revealed
By Alex Delmar-Morgan
Tue 20 Jan 2009 12:13 PM

Real estate experts warned on Tuesday that thousands of tenants across Dubai could still face steep rental price rises – despite a decree issued by Dubai’s ruler.

Sheikh Mohammed bin Rashid Al Maktoum on Monday issued a directive freezing rents on residential and commercial properties in the emirate in 2009, for tenants who renewed their contracts last year.

However, if rents are more than 25 percent below the guideline figure recommended in Dubai’s new rental index , then the freeze does not apply.

This means many expatriates who arrived in the emirate before rampant inflation took hold, face paying substantially more to renew their leases this year.

Andrew Chambers, managing director of real estate consultant Asteco told Arabian Business: “There will be quite a lot of people potentially [who will see their rent rise in 2009].”

“Those people could have been in there two, three, four, five years and historically they’ve kept it down so that they would be in line for increases. If they [rents] are disproportionately low then why not?” he added.

But Dubai's new rental index has been attacked by agents for not being representative, and failing to take account of the quality, location and age of a building.

Peter Penhall, CEO of GoWealthy.com, an online property website, said: "I broadly support the logic but there are many holes in it. It's not representative. You've got an average benchmark rental rate for areas in Dubai where there older properties as well as new ones."

Other agents said the rental index will damage sentiment in an already rapidly cooling market at a time when landlords should be free to charge rents according to the quality of the building.

Laura Adams, leasing manager at broker Better Home's head office said: "The prices for rents are way down on what landlords were getting last year. The market should speak for itself. The prices are out of date and are too simplistic."

Tim Boswell, managing director of broker Ocean View, said the index was largely 'irrelevant' given the strong market feeling that rents would fall in the coming months.

The news comes just days after Dubai's Real Estate Regulatory Authority (Rera) revealed it had finalised the rental index that it hopes will replace the need for rent caps in the future.

Rera recommends that a one bedroom apartment in the Greens should cost between 110,000-130,000 dirhams ($30,000-$35,400) a year, against 110,000-150,000 dirhams ($30,000-$40,000) in the Marina.

The price of renting a one bed flat in International City, according to the index, is 65,000-75,000 dirhams a year, whereas the same property in Jumeirah Beach Residence (JBR) is placed at 110,000-150,000 dirhams a year.

Rera suggests a five bedroom villa on the exclusive Palm Jumeirah island should be leased at between 500,000-700,000 dirhams a year. A smaller villa with two bedrooms in the Springs will cost 190,000-230,000 dirhams a year.

The rental value of residential villas - Per Thousands


#

Areas

Two
B/R

Three
B/R

Four
B/R

Five
B/R

Six
B/R

1

Dubai
Tower / Downtown

.....

.....

.....

.....

.....

2

Greens

.....

.....

.....

.....

.....

3

Dubai
Marina

.....

300-320

.....

.....

.....

4

International
City

.....

.....

.....

.....

.....

5

Green
Community

.....

270-280

350-400

390-400

440-460

6

Jumeirah
Beach Residence

.....

.....

.....

.....

.....

7

Palm
Jumeirah

.....

350-400

400-500

500-700

.....

8

Jumeirah
Lakes Towers

.....

.....

.....

.....

.....

9

Arabian
Ranches

190-200

250-280

320-350

380-400

400-430

10

Jumeirah
Islands

.....

.....

400-500

500-550

.....

11

Meadows

.....

300-320

330-400

420-500

.....

12

Springs

190-230

250-280

300-350

.....

.....

13

Gardens

.....

.....

.....

.....

.....

14

Discovery
Gardens

.....

.....

.....

.....

.....

15

Dubai
Investment Park

.....

.....

.....

.....

.....

16

Dubai
International Financial Centre

.....

.....

.....

.....

.....

17

Dubai
Silicon Oasis

.....

.....

.....

.....

.....

18

Al
Garhoud

.....

200-240

220-280

280-320

.....

19

Al
Muteena

.....

130-150

150-180

250-270

.....

20

Hor
Al Anz

.....

120-140

160-200

220-260

.....

21

Abu
Hail

.....

130-150

140-170

170-200

.....

22

Al
Wahaida

.....

130-150

140-170

170-200

.....

23

Al
Tawar

.....

160-180

170-200

200-240

.....

24

Al
Rashidiya

.....

150-170

160-190

190-230

.....

25

Nad
Al Hamar

.....

160-190

220-240

290-320

.....

26

Al
Warga

.....

150-180

210-230

280-310

.....

27

Mirdif
(Complexes)

.....

150-180

190-200

220-250

.....

28

Mirdif
(Individuals)

.....

170-200

230-250

300-320

.....

29

Al
Mezhar

.....

150-180

210-230

280-310

.....

30

Al
Khawaneej

.....

150-180

210-230

280-310

.....

31

Al
Muhaisna First

.....

150-180

210-230

280-310

.....

32

Al
Qusais

.....

120-140

150-180

200-220

.....

33

Nad
Shamma

.....

150-170

160-190

190-230

.....

34

Al
Jafeliah

100-130

120-150

140-170

160-200

.....

35

Al
Mankhool

105-135

125-250

220-350

300-450

.....

36

Al
Hudaiba

110-140

130-160

150-180

170-210

.....

37

Al
Quoz Industrial

150-180

170-210

200-250

240-290

.....

38

Al
Badaa

150-200

170-220

210-260

250-290

.....

39

Al
Wasl

160-210

180-240

220-280

250-300

.....

40

Al
Safa

170-220

190-250

230-320

260-400

.....

41

Al
Manara

170-220

190-250

230-320

260-400

.....

42

Umm
Al Sheif

170-220

190-250

230-320

260-400

.....

43

Al
Barsha Residential

150-200

220-270

250-300

300-400

.....

44

Jumeirah

240-290

250-280

340-410

380-450

.....

45

Umm
Suqeim

250-300

290-360

350-420

400-470

.....

 

The rental value of residential apartments - Per Thousands


#

Areas

Studio

One
B/R

Two
B/R

Three
B/R

Four
B/R

1

Dubai
Tower / Downtown

110-118

125-165

150-260

280-320

330-350

2

Greens

80-90

110-130

168-180

200-260

280-320

3

Dubai
Marina

80-90

110-150

150-180

220-300

280-400

4

International
City

45-55

65-75

85-90

.....

.....

5

Green
Community

80-90

100-120

140-150

240-260

.....

6

Jumeirah
Beach Residence

80-90

110-150

150-180

220-300

280-400

7

Palm
Jumeirah

.....

140-210

210-240

270-320

.....

8

Jumeirah
Lakes Towers

75-95

120-135

170-220

240-350

380-400

9

Arabian
Ranches

.....

.....

.....

.....

.....

10

Jumeirah
Islands

.....

.....

.....

.....

.....

11

Meadows

.....

.....

.....

.....

.....

12

Springs

.....

.....

.....

.....

.....

13

Gardens

.....

90-95

100-115

130-140

.....

14

Discovery
Gardens

70-75

95-105

130-145

.....

.....

15

Dubai
Investment Park

70-80

90-95

130-135

200-240

.....

16

Dubai
International Financial Centre

130-150

170-190

230-280

280-320

.....

17

Dubai
Silicon Oasis

55-70

95-125

130-140

150-170

.....

18

Al
Murar

40-50

55-65

65-75

.....

.....

19

Ayal
Nasir

40-50

60-70

70-80

.....

.....

20

Al
Daghaya

40-50

60-70

70-80

.....

.....

21

Al
Ras

40-55

65-75

75-85

80-85

.....

22

Al
Buteen

60-70

85-95

120-140

.....

.....

23

Naif

40-50

60-70

70-80

.....

.....

24

Al
Baraha

40-50

55-65

65-75

.....

.....

25

Al
Muhaisna Fourth

35-45

55-65

70-75

85-90

.....

26

Al
Warqaa (Buildings)

....

65-75

85-95

140-150

.....

27

Al
Nahdah

45-47

65-75

85-95

100-120

.....

28

Hor
Al Anz

45-50

65-70

80-90

100-120

.....

29

Al
Qusais

45-50

75-80

100-110

120-135

.....

30

Hor
Al Anz East

55-65

80-90

100-120

140-160

.....

31

Abu
Hail

45-50

65-75

80-90

100-120

.....

32

Al
Muteena

55-65

65-75

100-120

120-150

.....

33

Al
Muraqqabat

60-70

85-100

140-150

160-180

.....

34

Al
Riqqa

60-70

85-100

140-150

160-180

.....

35

Rigga
Al Buteen

60-70

90-100

110-120

140-150

.....

36

Mirdif

60-70

80-90

120-130

.....

.....

37

Al
Garhoud

65-70

90-95

125-135

.....

.....

38

Port
Saeed

55-65

80-85

100-110

.....

.....

39

Al
Sabka

40-50

60-70

70-80

.....

.....

40

Al
Souq Al Kabeer

45-60

75-80

85-95

125-135

....

41

Al
Huamriya

45-65

75-110

90-150

150-200

200-250

42

Al
Jafeliah

45-40

55-65

75-130

110-170

....

43

Al
Badaa

45-50

60-90

75-110

....

....

44

Satwa

45-50

60-90

75-110

....

....

45

Al
Hudaiba

50-60

65-85

90-150

130-180

170-220

46

Al
Mankhool

60-85

90-120

115-170

150-200

170-220

47

Umm
Hurair

60-80

80-120

110-160

150-200

....

48

Al
Karama

50-60

70-110

100-150

120-180

170-200

49

Oud
Metha

70-80

95-120

120-150

155-180

....

50

Trade
Center 2

85-90

125-145

150-180

200-210

....

51

Trade
Center 1

85-90

124-145

150-180

200-210

....

52

Al
Barsha

60-85

80-120

100-160

130-170

....

53

Al
Refaa

50-60

65-85

90-150

130-180

170-220

54

Al
Musalla

45-60

75-80

85-95

125-135

....

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