Luxury rentals stand their ground

02.04.2015
Over a 12 month period ending December last, rentals were up by an average 8.1%, according to a Knight Frank, which also found that Tokyo’s gains were around 11.1%.

For investors it still makes sense to invest in Dubai’s luxury properties, with the city recording the second-highest increase in rental value gains for its high-end units after Tokyo for 2014.

Over a 12 month period ending December last, rentals were up by an average 8.1%, according to a Knight Frank, which also found that Tokyo’s gains were around 11.1%.

“Outside [of] the oil industry tenant demand has proved robust,” Kate Everett-Allen, partner for Residential Research at Knight Frank, told Gulf News.

Interestingly, the Knight Frank report also indicates that the bulk of the 8.1 % increase in Dubai took place during the first six months, while the second half was relatively subdued.

By the looks of it, rentals for luxury property in Dubai seems impervious to any downward pressure. For that matter, the city’s tenants would say such is the case with all of Dubai’s rental market — high and low.

“A luxury villa on the Palm can fetch upwards of AED1.2 million per annum [in rent],” said Luke Hexter of Luxhabitat. “We have seen rents at Dubai Marina up by roughly 10% since last year, while on the Palm [they] have stayed more or less stable.

“Luxury two-bedroom apartments on the Palm can fetch upwards of AED350,000 annually, while two-bed [apartments] in Dubai Marina would be AED250,000 yearly.”

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Lease process (Rent out)

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership

1 day

Ad placement:

  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.

Up to 2 days

Signing of the lease agreement

Expenses of the seller:

None

Additional services:

Property management

Lease process (Rent)

1 hour

Contract of the lessee and agency.

Up to 5 days

Real estate search.

Selection of optimal options.

Up to 2 days

Signing of the lease agreement

Expenses of the lessee:

-5% agency commission of the annual contract price

Additional services:

None

Purchase process

1 hour

Contract of the tenant and agency.

~ 2 weeks secondary

~ 3 weeks new building

Property Selection

Selection of optimal options

1 Week

Registration of the contract of purchase / sale

Customer charges:

  • 2% from purchase at transaction
  • 4% - registration of the transaction at registration

Additional services:

Property management

Sales Process

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership

1 day

Ad placement:

  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.

Up to 2 days

Signing of the lease agreement

Expenses of the seller:

None

Additional services:

None

the management process

1 hour

Contract of the owner and agency

1 year

Rendering of management services

1 day

Reporting

Expenses of the owner:

5% of the annual rental price

Additional services:

None

Investment Process

1 hour

Contract of the tenant and agency.

From 3 days

Selection of optimal investment options

1 Week

Registration of the contract of purchase / sale

Expenses of the investor:

  • 2% when investing in the secondary market
  • 0% when investing in a new building
  • 4% - registration

Additional services:

Property management