By Andy Sambidge
New rental index on RERA website; apartment rents fall, villas hold prices.
Apartment rents in Dubai have fallen in many areas of the city in the past six months, according to the latest guidelines published by the Real Estate Regulatory Agency (RERA), Arabian Business can reveal.
Minimum rental values have dropped by as much as nearly 30 percent in RERA's updated index for tenants and landlords which was last published in April.
However the rate of decline in values has slowed compared to the fall between the December 2008 and April 2009 RERA indices, when rents dropped by up to 50 percent in some areas.
A studio apartment in Jumeirah Lake Towers (JLT) is among the sharpest fallers with rental guides for October between AED40-70,000, compared to a minimum of AED60,000 in April.
Rents have also fallen by at least 10 percent for some apartment types in the Downtown area, the Greens, Palm Jumeirah, Al Barsha and Jumeirah Beach Residence, according to Arabian Business calculations taken from the RETRA website on Thursday.
But, a different story seems to have emerged regarding villa rents with many areas of Dubai holding their rental values compared to April, or even increasing them.
Fore example, RERA's rental guide for a three-bed villa on Palm Jumeirah in April was AED250-280,000 but this figure has now risen to AED270-300,000. Meanwhile, villa rents in the Springs, Meadows and Umm Suqeim were unchanged, compared to the previous RERA index.
Earlier this week, an Asteco report showed that rental values for apartments in Dubai continued to fall faster than in any other part of the UAE during the third quarter of 2009.
Three-bed homes were worst hit as they plummeted 13 percent between July and September, the report said.
Dubai also saw the largest drop in rent for two-bed apartments with values down eight percent, Asteco added.
In June, Landmark Advisory said that it expectsed further decreases in Dubai rents for the third quarter but that there were signs that rents are stabilising. Apartment rent examples from the RERA website:
The rent for a studio apartment in International City is in the range AED30-35,000 per year, compared to AED35-45,000 in April.
The rent for a one bedroom apartment in Discovery Gardens is in the range AED55-65,000 per year, compared to AED60-70,000 in April.
The rent for a one bedroom apartment in Dubai Tower/Down Town is in the range AED70-110,000 per year, compared to AED100-165,000 in April.
The rent for a two bedroom apartment in Greens is in the range AED100-130,000 per year, compared to AED120-140,000 in April.
The rent for a studio apartment in JLT is in the range AED40-70,000 per year, compared to AED60-70,000 in April.
The rent for a two bedroom apartment in Palm Jumeirah is in the range AED130-165,000 per year, compared to AED160-200,000 in April.
The rent for a one bedroom apartment in Dubai Marina is in the range AED70-110,000 per year, compared to AED80-120,000 in April.
The rent for a two bedroom apartment in Al Barsha is in the range AED75-90,000 per year, compared to AED95-115,000 in April.
The rent for a one bedroom apartment in Jumeirah Beach Residence is in the range AED80-100,000 per year, compared to AED100-125,000 in April.
The rent for a studio apartment in Mirdiff is in the range AED35-45,000 per year, compared to AED45-65,000 in April.
Villa rent examples:
The rent for a three bedroom villa in Palm Jumeirah is in the range AED270-300,000 per year, compared to AED250-280,000 in April.
The rent for a four bedroom villa in Arabian Ranches is in the range AED200-240,000 per year, compared to AED220-250,000 in April.
The rent for a three bedroom villa in Springs is in the range AED140-160,000 per year, unchanged from April.
The rent for a four bedroom villa in Meadows is in the range AED220-240,000 per year, unchanged from April.
The rent for a five bedroom villa in Umm Suqeim is in the range AED290-360,000 per year, unchanged from April.
Given it's credibility, I think RERA should stop publishing indices. Up to 2008 end, there was a shortage of accommodation and it would have helped if there was fair index. RERA's previous indices were anything but fair. Anyway, these measures were meant to protect consumers from effect of extra-ordinary circumstances.Now, going by every Ã«xpert", there is going to huge surplus of units in Dubai. This is also evident from the "to let" boards that one see driving by different areas. So, there is no need for RERA to come out with such indices. It is best to leave the field open for market forces. Going by various articles we read in AB, I am sure RERA has a lot of work to do about stalled developments, delayed projects, etc.
I donot Understand Who does Property Prices Research for RERA. Are these prices at which Lanlords wanted to rent or are these the Market Prices at which people wanted to buy. I think in RERA's Business Plan, There is no word called,'Downward Trend'. its better to stay in London with 80% better Opportunites than here with Better Property Rates
go vsiti dubizzlle for advertised aprtments and go further to negotiate ~ you will find the real story ~ all the examples above need a further 20% down o come close to reality~ this is apositive correction which will allow the avergae population to live well without shedidng our disproprtionate monthly payments over rent .. still not the truth ~ what does this place need to really realise the real price of realty ~
The only official use for this, that I know of, is to give a mechanism for landlords to increase rents in some cases. It's still overpriced.
RERA is losing its identity as an independent agency. Any such index should match reality. There is plenty of units in different areas with far less rent than the published data.
Rera should just be dismantled because the only outcome it shows is the insecurity of the Dubai property market. None have a clue about being an agency for the protection of all parties in a real estate transaction. please tell me where your multiple decades of experience from working in a mature real estate market, such as Europe and the USA, gives you the credibility to say or enact anything. All you do is lie and spin. There is ZERO transparency in the property sector in Dubai. Investors will not come, you can spin it any way you want, it's over for a long time until policy changes are made and Dubai has multiple sectors to support it's population, just not mainly real estate and hospitality. Now for the haters of the truth, you know who you are, keep the nonsense to yourself, I don't need to hear your opinion on what I stated. I have been in the industry worldwide for 25 years, and have a Ph.D. in Business. I have worked for Nakheel on down in Dubai and have held number 1 & 2 most senior positions in management. The truth must be told to protect innocent people, not the greedy speculators, where one sold to the other, in a feeding frenzy of piranas, ultimate ponzi scheme where the last one left standing gets shot down. The world knows... Dubai needs experienced people from OUT OF DUBAI to put this market on it's way to a somewhat, if at all possible recovery, that will take a decade to be realized. I keep saying "The truth shall set you free", Dubai it's time...put the shady criminal whitel collar individuals that were in the real estateand banking sector in Dubai, behind bars, that is, if they haven't left the country yet with all the $$$$$, which most have done! Good Luck and Good Health to all my friends in Dubai and abroad both Emarati and Ex-Pats. Cheers to all!
There are a lot of empty flats in Muhaisnah4 owned by Wasl.My building alone has 14.The manaement at Wasl are living in a fools paradise and still hasnt accepted the reality.Compared to the April index there is hardly any change in rents for this area.The RERA index is a big joke.
I do not believe the data by RERA-the rental rates they quote are extremely bloated. It seems to be encouraging to quote RERA rates by landlords now to prospective renters. This agency is just a new organization to quote for real estate owners. It is not for the consumer! The rates for rental apartments and villas quoted by RERA is far too bloated then reality. Check Dubizzle for real rates!
the rera has never considered the age and condtions of the property in its index otherwise how can it justify the rents according to its index for bur dubai and rafa areas which are the oldest parts of dubai some of the bldgs are 30 to 35 years old and it seems the governmewnt has flawed in handing such a sensitive subject to a bunch of ametuerish people or representatives of the the few landlords who have 90 % bldgs in bur dubai and rafa areas who are advancing their own personal benefits and not considering the general business condtions in the mkt and which will ultimately bring a very bad business repution to the name of dubai being a friendly business destination in the gulf.
Despite I agree fully with your comments...you made laugh from the level of frustration you expressed in your comment.