Mid-range apartments rents in Dubai and Abu Dhabi perform well

Mid-range apartments rents in Dubai and Abu Dhabi perform wellImage Credit: Javed Nawab, Archives, gulfnews.com

- Mid-range apartment communities in Dubai performed well this year, with rental rates increasing by more than 30 per cent for most communities. Jumeirah Lakes Towers (JLT) witnessed the fastest growth, with rates up by 60 per cent over the past 12 months.

- Sales prices increased by similar rates (around 30 per cent) compared to the previous year, with JLT outperforming other developments with a 40 per cent growth in rates. This is due to the overall increasing rates throughout Dubai that have led residents to consider more affordable communities. JLT was one of the preferred options, due to significant improvements in traffic, completion of the community as a whole and its proximity to Dubai Marina, retail and the beach.

- On the other hand, established communities such as The Greens witnessed lower growth rates as these have been completed years ago and prices were already higher.

- Sales prices at Motor City are significantly lower than in other mid-range developments, mostly due to the large apartment sizes that make price points higher.

- Asteco expects the midrange apartment segment to continue to benefit from strong levels of demand. However, only moderate sales price and rental growth is expected.

- Similar to Dubai, midrange apartments in Abu Dhabi performed well over the past few months, with Investment Areas such as Shams Abu Dhabi as well as establishing areas such as Danet Abu Dhabi witnessing the highest increases.

- With rents rising for high end and prime properties, residents are searching for more affordable options that still offer community facilities and quality finishing. Danet and Rayyana are proving to be very popular, particularly for teacher and middle-management accommodation, due to their relative good quality, facilities and amenities.

- On Najmat, the only completed tower is Marina Bay by Damac, whereas Shams Abu Dhabi comprises several towers such as Amaya Tower, Sea View Tower, Beach Towers, Al Wifaq Tower and Mangrove Place. Sales prices in both Shams and Najmat increased 15 per cent since last year and 8 per cent since last quarter, particularly due to the completion of more retail facilities within proximity to the developments.

Source: Property Weekly

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