Rents drop in freehold communities

03.09.2014
Rents for apartments in Downtown Dubai, International City, Discovery Gardens and Remraam have dropped, according to the latest update of Real Estate Regulatory Agency’s (Rera) rental index. Rents are either falling or holding steady in Dubai’s freehold communities, reveals the latest update of Real Estate Regulatory Agency’s (Rera) rental index.
According to a report in Emirates 24/7, Downtown Dubai is witnessing rental declines across all categories of apartments – studios, one- and two-bed units. Studio rates are down 6.25% to 7.14%, as per the final index update with rents ranging between AED65,000 and AED75,000 per annum (pa).
One-bed units, available for AED90,000 to AED110,000 pa, have witnessed a decline of 8.33% to 10%, while two-bed units, renting for AED160,000 to AED190,000 pa, are seeing rents fall by 5.88%.
Meanwhile, while rents for one- and two-bed apartments in Dubai Marina remained stable at AED90,000 to AED120,000 pa and AED140,000 to AED170,000 pa, studio rents have come down by between 6.67 and 8.33%. Leases for studios now range between AED55,000 and AED70,000 pa.
Dubai’s ‘affordable communities’ are also witnessing a decline in rents.
Rents for studio apartments in International City dropped by 12.5% to AED20,000 to AED35,000 pa, while two-bed units saw a fall of 8.33% with lease rates between AED45,000 and AED55,000 pa. There was, however, no change in rates of one-bed units (rentals were between AED35,000 and AED45,000 pa.
In Discovery Gardens, studio rents dropped by 10 per cent to Dh40,000 - Dh45,000 pa, while lease rates for one-beds declined between 7 - 8.5%.
Rents range between Dh55,000 and Dh65,000 pa. Two beds, however, remained steady at Dh70,000-85,000 pa.
In Remraam, studio lease rates fell between 11 and 12.5% to AED35,000 to AED40,000 pa. One-beds saw no changes and rates remained at AED45,000 to AED55,000 pa.
Rents for two-bed apartments declined 6.27% to 14.28%, with leases now available between AED60,000 and AED75,000 pa. There was no change in rents across Business Bay, Jumeirah Lakes Towers, and Dubai Silicon Oasis. In Business Bay, lease rates for studios, one- and two-bed apartments remained between AED60,000-AED70,000 pa, AED80,000-AED100,000 pa and AED120,000-AED140,000 pa, respectively.

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