Rents in Dubai remain the same as in 2011
Growing supply of residential units
Despite the general optimism regarding the uplifting of Dubai’s rental market, a quick review of Dubizzle’s classified pages, still re-assures residents who pay rents.
The availability of residential units in Dubai is evidently increasing. DubaiChronicle.com reported a week ago that there are over 36,000 residential listing posted only on Dubizzle. However, as of today, the residential listings are already nearly 37,200. Such numbers have not been seen in the past years.
Close examination of the availability in the Old Town Downtown Dubai, also reveals that rental values remain unchanged from the summer months of 2011. One-bedroom apartments are offered for AED80,000 on average. As 2 bedroom apartments vary on the size, rental price range starts from AED105,000 to AED125,000. Always remember, these are officially announced rents, and you can obtain a minor discount of around 5% when it comes to the actual renting. Most of the landlords are aware of tenants and agents bargain tactics and have priced in a discount.
The stability in the rental values in the Oldtown Dubai, which is one of the most desired central areas of the city due to its close proximity to the Dubai Mall and the Burj Khalifa, can be a clear indicator about the near-term direction of the Dubai rents. Plenty of availability can only add to the uncertainty.
Usually hot summer months are slow for real estate business, as many people leave Dubai for holidays. Back in the summer of 2011, rents in the Old Town slid up to 15% for some units. For example, a one bedroom apartment with study that usually goes for AED 90,000 was rented out for AED74,000 in July 2011.
Of course, there are always some real estate agencies and brockers who list properties with higher prices in attempt to lift the real estate market. Therefore, comparing the offers before taking a decision is an imperative.
This may be a good news for prospective tenants and a worrying one for landlords.
