Dubai rents drop in 2016 Rera index

Dubai rents drop in 2016 Rera indexImage Credit: Supplied

Rents in most of Dubai's residential communities, particularly freehold areas, will likely be cheaper this year compared to 2015.

The rental calculator by the Dubai Land Department's Real Estate Regulatory Authority (Rera) has just been updated to provide the leasing rates for various apartments and villas in 2016.

The calculator, which serves as an online tool for determining rental increases, suggests some price ranges and advises tenants whether or not they are entitled to an increase this year.

A quick review by Gulf News of the latest data shows that the leasing rates for one-bedroom apartments in 2016 have dropped by at least 2.3 per cent to as much as 14 per cent.

Compared to the prevailing rates in July 2015, one-bedroom flats in International City, Discovery Gardens, Jumeirah Village, Greens, Dubai Marina, Jumeirah Beach Residence and Palm Jumeirah are now generally cheaper.

Apartments in Business Bay and Downtown, however, have gone up by 2.7 per cent and 2.4 per cent on average, respectively. Rents in some communities, including Jumeirah Lake Towers (JLT) remain unchanged at Dh75,000 to Dh 95,000 a year.

According to the rental calculator, the rent for a one-bedroom residential unit in Discovery Gardens is now in the range of Dh60,000 to Dh75,000, up 3.5 per cent from July's rates of between Dh65,000 and Dh 75,000.

In International City, annual rates range between Dh 38,000 and Dh45,000, about 14 per cent cheaper compared to Dh42,000 to Dh55,000 last year.

Similar flats in Jumeirah Village are in the range of Dh55,000 to Dh70,000 a year, down by an average of 7.4 per cent from Dh55,000 to Dh80,000 in 2015.

In the Greens, rents for one-bed flats now cost around Dh80,000 to Dh90,000 a year, compared to Dh80,000 to Dh105,000 last year.

Dubai Marina's one-bedroom apartments, now costing between Dh90,0000 and Dh110,000, registered a 4.7 per cent decline when compared to July 2015 rents.

Rents in JBR range between Dh90,000 and Dh120,000, down by 2.3 per cent compared to 2015 price range of Dh90,000 to Dh125,000.

In Palm Jumeirah, rents are between Dh120,000 and Dh155,000, down by approximately 3.5 per cent from last year's rates of Dh110,000 to Dh175,000.

More expensive

The 2016 rates for one-bedroom apartments in Business Bay will be in the range of Dh80,000 to Dh105,000, up 2.7 per cent from Dh75,000 to Dh105,000 last year.

In Downtown Dubai, similar apartments will cost around Dh95,000 to Dh115,000, up 2.4 per cent from Dh95,000 to Dh110,000 last year.

Did you know that even Sharjah sees softening of rents due to new supply

Source: Cleofe Maceda, Senior Web Reporter,


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