Rentals for studio apartments in International City and Dubai Investment Park (DIP) remain the lowest among Dubai’s freehold communities, Real Estate Regulatory Agency’s (Rera) rent index for 2013 reveals.
Lease rates in International City ranges between Dh20,000 and Dh25,000 per annum, which, in fact, have risen by 33 per cent when compared to 2012’s final index update.
Rents for studios in Dubai Investment Park are currently between Dh20,000 and Dh25,000 pa and remain unchanged when compared to the last updated index.
Rents for studios in Dubai Silicon Oasis (DSO) range between Dh25,000 and Dh30,000 pa, while leases in International Media Production Zone (IMPZ) range between Dh22,000 and Dh30,000 pa.
In Discovery Gardens, leases rates vary from Dh25,000 to Dh35,000 pa, but overall, have registered an 17 per cent increase.
The rent index, which aims to provide landlords and tenants a guideline to rent pricing, is updated thrice a year.
The most expensive community to rent a studio is Downtown Dubai. Rents range between Dh55,000 and Dh75,000 pa. Dubai International Financial Centre follows with rents ranging from Dh45,000 to Dh70,000 pa.
Rents for one- and two-bed apartments continue to be the lowest in International City. One beds are available for Dh25,000 to Dh30,000 pa, while two-beds vary between Dh35,000 and Dh40,000 pa followed by DIP, DSO and IMPZ.
In October 2012, Emirates 24|7 reported that landlords had been increasing rents arbitrarily, ignoring the rent index and were even asking tenants to vacate their apartments if they refused to pay the increased rent.
Earlier in January, John Stevens, Managing Director, Asteco Property Management said: “If demand continues, we expect to see a shift in the market from being predominantly tenant-led to one controlled by landlords, especially in quality, well managed and established developments.”
The property consultancy said it expects landlords will increasingly be demanding one- or two-cheque payments and will become less flexible in regards to leasing terms. Incentives such as free rent period are likely to disappear completely in the next six months.