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Top Dubai locations- rents still falling

Despite conflicting claims on whether or not Dubai’s property market is bottoming out, several real estate experts could agree on one thing: rents are still favourable to a large part of the tenant community. During the first half of 2016, overall residential rents in Dubai were estimated to have dropped by 4 per cent to 6 per cent.

A number of residential locations, including the Palm Jumeirah, Dubai Marina, Jumeirah Lakes Towers, Discovery Gardens and International City continued to post declines, with gross apartment rents dropping by an average of 5.7 per cent in June compared to a year earlier.

A similar trend is reflected on the latest figures released by the REIDIN general index for rents, which showed that average lease rates slipped 4 per cent during the same period. Property portal Bayut.com put down the rental decline for the same period at 6 per cent, with average rent for 1-bed and two-bed apartments dropping to Dh99,000 and Dh150,000, respectively.

Real estate agencies, companies and brokers use different methodologies and data sets when analyzing market trends, so estimated price changes can vary from one source to another, but a general trend should be easy to spot.

According to Jesse Downs, managing director at Phidar Advisory, soft demanding owing to fewer employment opportunities, has helped keep a damper on rents, especially for larger, more expensive apartments. The trend is expected to continue for another 12 months, or until more jobs are created. Phidar’s data showed that rents in premium quality units dropped by 7.8 per cent in the last year and 1.9 per cent in the last month. Villa rents dropped 10.8 per cent year-on-year and 0.8 per cent month-on-month.

The latest data from REIDIN still suggest that rents have remained “largely unchanged” and that the market is currently at a cyclical trough. It expects market recovery to be delayed partly due to Brexit fears.

Projects from this area

Marquise Square, Dubai

Spectacular views of the world’stallest tower. Just seconds from the Dubai Water Canal, anticipated to become the next Dubai Marina.

A striking 29-floor structure created by a highly regarded local Emirati family developer. Inside, a luxurious range of studio, onebedroom, two-bedroom and threebedroom apartments, finished to some of the finest standards in the city.

From just AED 895,000 with only a 15% deposit, this opportunity will also offer a solution to the huge undersupply of studio apartments at the very heart of Dubai.

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Al Sana

This is a five-story serviced apartment complex, located beside RAK Hospital, in Ras al Khaimah’s premier residential district.  The RAK Free Zone is only minutes away on traffic-free roads. 

Beaches, marinas, world class golf courses, shopping centers, hotels, and all the amenities of fast-growing Ras al Khaimah are easily accessible. Downtown Dubai is an hour’s drive on a superb highway.

Mountain View’s residential facilities are ideally located for any RAK-based businessman or professional seeking a luxurious, secure, centrally located residence. Build quality is of the highest international standard, with a US-based international project management firm supervising construction.

The ground floor of the Mountain View complex will have reception, offices, gym and other services for residents and guests. Each of the 5 floors above will hold a total of six serviced apartments. The 800 sq ft one-bedroom and 1200 sg ft two-bedroom serviced apartments are available with full ownership rights at special pre launch prices

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