Dubai: Tenants can now breathe easy as realty experts predict residential rents to remain stable or fall slightly next year.
“Rents in Dubai are now close to their peak. They have risen 50 per cent in the last two years and the market is showing signs of slowing down. In the last three months, rents largely remained stable or dropped slightly in certain parts of Dubai. Even areas like Discovery Gardens, International City and Dubai Sports City which recorded particularly steep rent hikes over the last year saw marginal declines in October and November. Going forward, rents are likely to remain stable in 2015,” Craig Plumb, head of research at JLL MENA, told XPRESS.
According to Asteco Property Management, rents for three-bedroom apartments in Dubai Marina range from Dh150,000 to Dh270,000. In Downtown Dubai, they hover between Dh210,000 and Dh290,000. In Discovery Gardens, two-bedroom apartments fetch between Dh80,000 and Dh90,000.
No significant changes
Plumb said rents in Bur Dubai and Karama are unlikely to see any sharp increase or decrease as not many new buildings have come up there. “The rental market in Bur Dubai and Karama is mainly coming from people renewing their existing contracts which are governed by the rent cap. Landlords in these areas will not be able to hike rents significantly.”
According to the Real Estate Regulatory Authority’s (Rera) rental calculator, the average rent for a two-bedroom apartment in Al Mankhool area in Bur Dubai is between Dh80,000 and Dh95,000… see more