By Elsa Baxter
International City studio rent now AED26,500 a year, price could drop further says agent.
Property rents in Dubai are at their lowest level for three years and could drop even further, it has been reported.
Tenants can now rent a studio apartment in International City for as little as AED26,500 a year – down from AED60,000 six months ago, according to a report in 7days.
Cheaper rents are attracting people from neighbouring emirates, like Sharjah and Ajman, because they can now afford Dubai prices.
Real estate agent Mohammed Iftekhar, from Heaven Homes Real Estate, told the paper rents are likely to drop further. “We can’t say to what extent the rents will fall,” he said.
“According to my estimates, at least 2,000 families moved to International City because of the low rents in the last two months. At the same time a lot of people left after losing jobs,” Iftekhar said.
“There is a lot of movement within the city. People are moving from one place to another,” he added.
A typical one bedroom flat in International City is currently being advertised for rent for AED42,000, down from an AED80,000 price tag last year, the paper reported.
Meanwhile, rents are dropping elsewhere in Dubai. A studio in Al Baraha is renting for AED26,000 a year while one in Al Qusais is going for between AED36,000-40,000 a year. A one bedroom in Al Qusais is priced at AED42,000 to AED45,000.
I have been working in the real estate sector in Dubai since year 2000, and its not anything new...happening...its a circle...year 2000 also had plenty of tolet boards,,,,rents for studios were like this...when markets crash sentiments and confidence are low.....expats loss jobs....salary cuts....heavy reduction of expats as they are their families leave back to their home countries....its not new...... Baraha Dhs 11000 P.A. Bur Dubai Dhs 14000 P.A. Karama Dhs 17000 P.A. Shk Zayed Road Dhs 22000 P.A. Sharjah Dhs 7000 P.A. Ajman Dhs 5000 P.A. And guess what....one month rent free and 12 cheques payment facility and landlords gave red carpet welcome to each and every single tenant of theirs.... BUT BUT The beauty of Dubai is that it bounces back very sharply quickly and in unimaginable time and pace and heights...it has happened and it will happen again ....we have to just wait and watch.... Dubai has everything infrastructure presence in the outside world best living conditions of the world its an amazing place to live.....while not a single soul will deny.....leadership of Dubai is phenomenal. Dubai always surprises the world with its quality pace business friendly atmosphere and various other factors....it moves at lightning pace....whole credit to the leader of Dubai who is a role model to be watched and followed.....
As predicted here, there so much construction still on, so rents must and will drop. My contract was due for renewal in April mid. The agent used the RERA January index and increased the rent by 5%. RERA's new index due on April 1, 2009 was released in MAY. As per rent hike calculator on RERA's web site, my rent should not increase. I lodged a complaint with RERA by MAY end. There is no response till now. Another issue AB must debate in a forum here is the rent contracts. The contract terms look in to interests of only the landlord. It must be reviewed making it fair to both the tenant and the landlord. Few experts have raised this issue in some news papers. RERA has kept quite for obvious reasons.
I'd like to know what will happen to all those luxury villas that have been built in New Dubai... the massive ones in Jumeirah Lake Village... and Jumeirah Park (which looks like a ghost town) and the Garden Villas behind Ibn Battuta... Also - the ones in Falcon City of Wonders.... Also - all the new buildings being delivered in JLT..... There are no jobs to be had in Dubai.... so who will be living in them? Like someone said earlier in another post - one Emirati per building/villa? I certainly hope it doesnt come to that and while I'm really enjoying the more realistic rents, I'm really hoping Dubai picks up soon!
This is a glad good news to begin the week. With decreasing cost of living, Dubai should once again be a wonderful place to live. With decreasing rents which would mean more savings, in turn more money for disposable income, great for retailers. That is great. With decreasing rents, now I can satisfy myself with that new TV, iMac i have been dreaming of, oh new iphone, and improved standard of living. I am loving Dubai all over again. Its great to see prices are coming down to worth levels.
Agree with Ramesh. Prices should go lower though. My nephew just visited me from Santa Monica beach, California. He was completely impressed by Dubai / UAE but also could not believe how expensive Dubai is including the new rental. 18,000$$ (68,000 Dhs) in Greens is still way expensive!That's still more than Southern California! There is nothing to justify those high rents except greed, greed and greed.
Recently, (last week) I rented out my 1 bedroom apartment in Intl' City at 46k - 2 cheques and the same rent was offered by atleast 3 tenants/ agents. No doubt they satrt with 42. Time difference for old tenant / new tenant was 5 days!!. I feel the rents are now stablized at current levels.
It is all in papers only. Still my land lord in qusais is increasing the rent from 48k to 55k for a 1BHK and the rents for 2 bhks are not drastically reduced in & around qusais where it costing us around 80k
Iam living in this beautiful country from the time when i used to pay 18k for 1bedroom apt 24 - 30k for a 2bedroom in Deira, the reasonable amount under the current circumstances would be 30k for 1bedroom & 45k for a decent 2bedroom. Until then all these decreases dont make sense to me.
Nice to know that rents are falling. What's the 1 BHK & 2 BHK rents in Dubai Silicon Oasis?