Villa and Freehold communities in Dubai exhibiting drop in rents
Being the hub city of Middle East, every year Dubai receives huge number travelers, businessmen, job seekers and second home seekers. Irrespective to the reason and length of their stay in the city, accommodation is the compulsory need for all. It’s obvious not possible for everyone to purchase an apartment or villa in Dubai for their accommodation. Large number of such expats prefers becoming tenant after renting suitable residential property according to their needs. Regular rises in rents and property buying prices are observed after recovering from market crash. Steady rises eventually dragged property rents and prices to higher levels making accommodation a major concern for expats in Dubai.
Recorded Rental Decreases among Dubai Villa Communities
Renowned community of Palm Jumeirah experiences huge decline in rents ranges from 5% to 23% for four and five-bed units respectively. Units can be rented at Dh475,000 pa, and Dh575,000 per annum (pa) respectively. However, three bed units in same development show rises in rents from Dh310,000 pa to Dh370,000 pa.
Providing perfect accommodation for families and couples, The Spring faces substantial drop of 15% to 20% in rents for two and three-bed villa units. Now the same units are available at Dh127,500 (previous rent Dh150,000 pa) and Dh150,000 pa (previous rent Dh200,000 pa).
The Meadows, an established master planned residential community; suffer decrease of 4% for three bed units. The unit can be rented at reduced rent of Dh235,000 compared to previous rent of Dh245,000 pa. But four and five bed villa units show marginal increase of 3.77% and 4.8% and can be leased at Dh275,000 pa and Dh325,000 pa, respectively.
Conveniently located off the Emirates Road and Dubai Investment Park Road, Al Furjan also displays blend of decreasing and rising rents. Significant fall of 8% to Dh170,000 pa is observed for three bed villa units. Whereas, rents are increased by 7.3 per cent and 20 per cent to Dh220,000 and Dh300,000 pa for four and five bed villa units respectively.
Another master planned community of Dubai; The Arabian Ranches also undergo the same situation of falling and rising rents for its different units. Rents are declined by 4.34% with average rents at Dh220,000 pa for three-bed units. However, four and five bed units’ rents are increased by 2.4% and 2%. Same units can be rented at Dh320,000 pa and Dh375,000 pa.
Recorded Rental Decreases among Dubai Freehold Communities
Downtown Dubai, modern and an upscale community, is seeing fall in rents for all kind of apartments from studios top one and two bed units. 6.25% to 7.14% decrease is observed for studios. Now the units can be rented at Dh65,000 and Dh75,000 per annum (pa). Similarly, one and two bed units display the decline of 8.3% to 10% and 5.88% respectively. These units can be leased on rents Dh90,000 to Dh110,000 pa and Dh160,000 to Dh190,000 pa respectively.
Dubai Marina, an elegant manmade water front development faces decline in rents for studios, rents are reduced to 6.67% and 8.33% with rents ranges between Dh55,000 and Dh70,000 pa. Although, rents show stability at Dh90,000 to Dh120,000 pa for one and two bed apartment units.
International City, the true home for divergent nationalities and cultures also showing enormous fall of 12.5% in rents for studio apartments which are now rented at Dh20,000 (previous rent Dh35,000 pa). Although two-bed units faces a fall of 8.33% with rent rates between Dh45,000 and Dh55,000 pa. There has been no change in rents of one bed units and lease rates are unchanged between Dh35,000 and Dh45,000 pa.
Huge decreases of 11 and 12.5% are observed for studios in Remraam, now the units can be leased at Dh35,000 as compared to previous rents of Dh40,000 pa. Rents for one- bed units stay same at Dh45,000 to Dh55,000 pa.
Discovery Gardens, with spacious multi-sized apartments also suffer from rental decrease of 10% to Dh40,000 - Dh45,000 pa for studio apartments. Moreover, rent for one bed unit faces the decline between 7 - 8.5% and lease rate ranges between Dh55,000 and Dh65,000 pa. But the rent for two bed unit remains same at Dh70,000-85,000 pa.
However, experts are considering this rental decrease a seasonal change which is not expected to continue for longer duration. Analysts co-relate fall in rents with slower business activities during summer season. The latest RERA rental index cab better guide expats who are looking to rent an accommodation at suitable rents.