A chartered surveyor and property consultancy Land Sterling has published a new report on the state of the residential property renting market in Dubai, according to which second quarter’s main trend in this market segment was uneven rises and falls in prices with a total 0.4% growth, Emirates 24|7 cites.
The biggest second quarter price decline in Dubai rental market was recorded in International Media Production Zone (IMPZ), where prices fell by 8-11% on average, as well as in Discovery Gardens and Dubai Silicon Oasis. The average cost of renting a studio apartment in IMPZ to date is US $ 10,890 per annum, while one-bedroom apartment here can be rented for US $ 15,520.
Rental prices in Discovery Gardens fell on average by 7.8 per cent in the second quarter, according to Land Sterling report, and ranged from US $ 13,300 pa for a studio apartment to US $ 19,000 pa for a one bedroom apartment. And in Dubai Silicon Oasis, it is now possible to rent an apartment at a price in an average 7 per cent lower than it was in the first quarter. Rental prices here are similar to prices in Discovery Gardens.
An average 7 per cent rental prices decline was also recorded inJumeirah Lakes Towers, while Business Bay rental prices decrease was more negligible — three per cent for the quarter. Apartments in a prestigious central districts Dubai Marina and Jumeirah Beach Residence saw a minor decline in prices by an average of 4-5% in the second quarter.
As for the types of apartments, no significant changes in demand priorities were observed, and rental prices decline regarding one, two and three bedroom apartments was almost the same. However, larger apartments began to rise in demand, thanks to the tenants, who used to rent luxury villas in the developed residential areas, but later were priced of there.
“Rental market continues to be robust, in general, in view of the meek quarterly changes being observed since Q4 2014. The onset of Ramadan, a month characterized by slack demand, coupled with the new supply expected to enter the market at the tail end of 2015 may depress the rents on a much wider scale,” Land Sterling said in its report.