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In Pictures: Rents around Dubai

Though rents in Dubai have been on a general decline, there are some exception to the rule. Kipp takes a looks at property rates across the city.

January 19, 2011 3:29 by

  • The year 2010 was a particularly bad one for landlords. The business sections of leading papers were filled with gloomy reports of dramatic rent plunges. But, as an interesting piece in the Emirates 24|7 this morning suggested, not all locations are prey to falling prices.

    While the oversupply in the market may be attracting the UAE’s newer tenants to switch locations to get better value for money, many of those residents living in Dubai’s older and more organic communities in Old Dubai aren’t budging. In fact, some landlords have actually increased the rent of certain apartments in Karama and Bur Dubai.

    So this week, Kipp takes you through the various drops in prices for renting and leasing around different locations in the Emirates. Read it now, it could all have changed by next month.

  • Because Kipp has a flare for the dramatic, we start out with the big drops in the rent at the very dramatic (not to mention tallest tower in the world) Burj Khalifa.

    Though it was inaugurated in a spectacular display of fireworks early in 2010, reports of dropping rents were making it into the headlines as soon as the third and fourth quarter of the same year. How big were the drops, you ask? The asking price for apartments at the Burj dropped almost 40 percent, with studio apartments going for as little as Dh100,000 a month. We even read reports of rents at Dh80,000.

  • Old Dubai at its best, as far as Kipp’s concerned. This network of crowded streets, grocery shops, pharmacies and restaurants (the way only 40 years of inhabitation can develop a community) hasn’t seen rents affected in the least by the current drop in real estate values in Dubai. In fact, as Kipp said in our intro, some landlords have increased (though marginally) the prices of apartments.

  • Interestingly, prices on the Palm Jumeirah have remained flat especially during Q4. The going price for property in the Palm is still the highest around town at an impressive Dh1,500 per square foot.

  • Though villa prices around Dubai have remained rather resilient, The Springs is the exception to the rule; with analysts observing a 4 percent drop in rents in the project. Anything to do with the rumours of crumbling walls? wonders Kipp.

  • The grass is a bit greener at The Greens (bada-bing-bada-boom). “Lifestyle projects” as they are called have been relatively resilient, with rents in (the new) Old Town, Dubai Marina and the Greens remaining quite stable.

  • You may have noticed the previous four slides have been rather positive reflections on the real estate in Dubai. And if you hadn’t, ha! That was our little ploy. We wanted to lure you into a false sense of security, before we cling on to your short lived happiness and drag you down to the pits of gloom.

    OK, maybe you don’t care about real estate as much as we’d hope, but anyway here begins our roll of gloom. The general trend is the relatively lower end of newly constructed apartments has witnessed drops. For instance, apartments at Discovery Gardens have dropped more than Dh450 per square foot.

    So how much does it cost to rent an apartment in Discovery Gardens? A studio apartment can “set you back” anywhere between Dh25,000 to 35,000; a one bedroom apartment: Dh40,000 to Dh50,000 and a two bedroom apartment: Dh55,000 to Dh75,000.

  • Known for being the location of some pretty shady business and sensational crime in the country, the drop in the rents at International City has been nothing short of astonishing.

    In fact, for a studio the lower limits decreased 12 percent while upper limits for both studios and one-bedroom apartments decreased on average by 22 per cent. The average price dropped Dh350 per square foot, with studio apartments going for as low as Dh15,000 to Dh20,000 per year and one bedroom apartment going for anywhere in between Dh22,000 and Dh25,000 per year. A bargain. Sort of.

  • Though expectations were high for this piece of pricy property (yes, we’re all about the alliteration today), 2010 was far from gentle to the relatively under developed JLT. Lower limits for a one-bedroom fell over six percent while one-bedroom apartments in JLT fell a further 10 per cent.

  • What’s in a name?” is what comes to Kipp’s mind when we think about Dubai Silicon ‘Oasis.’ Dubai’s Oasis of Decline, more like it. Reports show that the largest declines here occurred in the lower limits of five-bedroom villas, especially in Dubai Silicon Oasis which witnessed a 13 percent drop. The three-bedrooms in the oasis dropped a more moderate six percent.

 

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2 Comments

  1. lina on January 20, 2011 12:24 pm

    what about barsha?

     
  2. MUSTAFA on January 20, 2011 3:04 pm

    even deira rents are either the same ( higher side ) or have increased…

     

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