Two luxury villa communities in Dubai have posted very opposing rents during the first half of 2016, suggesting a fragmented markets for renting in the city, according to a new report.
New research from propertyfinder.ae revealed mixed performance for Arabian Ranches and Emirates Hills, two of the emirate's most popular locations.
According to the real estate portal, Arabian Ranches rents rose by 6 percent in the first six months of the year while rents in Emirates Hills slumped by 12.5 percent.
Propertyfinder said the average villa lease price in January at Arabian Ranches was AED250,000 per year and this had risen to an average of AED265,000 per year by July.
Just 15km across town in the upscale Emirates Hills district, rents fell from an average of AED1.2 million per year in January, to an average of AED1.05 million in July.
“Our in-depth statistical analysis, drawing from the vast range of data generated by the site, always brings up a few startling trends,” said Lukman Hajje, chief commercial officer at propertyfinder.ae.
“it’s no secret that we are still dealing with the side effects of the slashed oil prices and other economic factors, so it is not too surprising that Emirates Hills – one of Dubai’s most glamorous communities – would be effected. However, rents dropping by over 12 percent in just six months is an attention grabber.”
He added: “It may be that Arabian Ranches – also an upscale community, but to a lesser degree – is seeing an upturn in fortunes as renters with plenty of cash are deciding to spend it slightly more cautiously.”
The propertyfinder.ae search results statistics also show that Arabian Ranches as the most viewed communities for rental villas in July while Emirates Hills did not appear on the top 10 at all.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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