EXCLUSIVE: New RERA index shows Dubai rent declines

Updated guide published by property regulator shows rents down by up to 20% since March.
EXCLUSIVE: New RERA index shows Dubai rent declines
RENT DROPS: Palm Jumeirah is among the areas of Dubai seeing rental values fall in the new RERA Rent Index. (Getty Images)
By Andy Sambidge
Wed 04 Aug 2010 06:21 AM

Rents in some of Dubai's most popular areas have fallen by about 20 percent since March, according to the latest Rental Index published by the emirate's property regulator.

Apartment rents in Dubai Marina, Palm Jumeirah, Discovery Gardens, Downtown Burj Khalifa have all seen declines, according to the Real Estate Regulatory Agency.

Prices for a one-bed apartment in Discovery Gardens, which houses about 41,000 mainly expats, fell to AED45,000-55,000 in the latest index, compared to AED55,000-65,000, an 18 percent drop for the minimum value.

The Rental Index is designed to give landlords and tenants in the emirate a guideline to pricing rents when negotiating contracts.

Dubai Marina, which is consistently voted the most popular for would-be buyers and tenants by propertyfinder.com, also saw rent falls.

Rents for a studio in the Marina start at AED40,000, down AED5,000 compared to the March index, while minimum rents for a one-bed have fallen more than 20 percent to AED55,000.

Apartments on Palm Jumeirah have also witnessed a decline since Q2, with minimum rents of AED75,000 quoted, compared to AED90,000 in March.

Two-bed minimum values on the man-made island have also dropped by AED20,000 to AED110,000, RERA said in its online guide which takes the form of a rent calculator.

Twenty percent-plus declines were also seen in The Greens where the top price for a two-bed has fallen from AED130,000 to AED100,000.

Studio apartments in International City were among the lowest rental values, according to the RERA guide, starting at just AED20,000, down AED5,000 from March.

Villa rents have also declined since March but some areas have witnessed a stabilisation in values, the RERA guide added.

Rents for a four-bed villa on Palm Jumeirah (at AED300,000-350,000) remained the same as in March, as did values for a three-bed villa in The Meadows (AED170,000-210,000).

However, other areas of Dubai still saw declines with the minimum rent for a two-bed villa in The Springs down AED15,000 to AED75,000.

The largest drop was seen for a four-bed villa in Umm Suqeim where minimum values slumped AED90,000 to AED160,000, a fall of more than a third.

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