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Sun 25 Mar 2012 06:14 PM

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Dubai rents rise 1% on average in Q1, says Asteco

Real estate consultancy says sales prices for villas show 4% hike in first quarter of 2012

Dubai rents rise 1% on average in Q1, says Asteco
(Credit: Bloomberg News)

Dubai apartment and villa rents remained broadly stable in the first quarter of 2012 with average rises on one percent, Asteco said on Sunday.

Asteco said it has noticed a lower number of listings for certain unit types in established locations such as Downtown Dubai and Green Community, resulting in higher asking rents.

"We believe this to be a sign of quality developments slowly reaching full occupancy, especially for dwellings which are low in numbers," it said in a new report on the emirate's residential real estate market.

Although rental rates for several areas saw marginal increases, these were often offset by incentives such as rent-free periods, no agency fee, free utilities, Asteco added.

The report said apartment sales prices remained relatively stable with some increases in Palm Jumeirah and the Greens, both popular areas among executives and families.

However, it noted that Discovery Gardens experienced further declines due "to the large amount of supply, low rental rates and high service charges".

Asteco said sales prices for villas fared positively in Q1, rising by four percent on average compared to last quarter.

It added that the rise was predominantly driven by increased acquisitions from owner-occupiers in areas such as Arabian Ranches, Emirates Living and Jumeirah Village.

Earlier this month, the Knight Frank Global House Price Index said Dubai's house prices rose by 2.3 percent in the last three months of 2011.

The real estate firm ranked Dubai 26th out of 52 property markets around the world - a list it once propped up after the house price crash in 2009.

Knight Frank said Dubai house prices rose 0.5 percent over the full year of 2011, while they increased by 0.4 percent between the second and fourth quarters of last year.

The index showed that Dubai saw a bigger recovery in the final quarter with a 2.3 percent rise, putting the emirate in the top 10 performers in the world for the period.

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Hassan 8 years ago

Folks food prices, school fees, Dewa charges, petrol prices have all gone up, not to forget emirates ID fees? inspite of the recession and salary has remained frozen for most of the expats since end of 2008. Now the greedy landlords and realsters want to hike up the rent and for what? Dubai needs to become affordable for people and then move towards consolidation and steady growth.