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28 March 2024

Discovery Gardens rents go up by 20-30%

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By Parag Deulgaonkar

Asking rents in Discovery Gardens have shot up by almost 20 to 30 per cent in the past two months, data analyzed by Emirates 24|7 reveals. 

Listings on various real estate portals show rents for one-bed units to range between Dh60,000 per annum and Dh65,000 per annum. 

In comparison, Asteco Property Management’s third quarter report had put one-bed lease rates at Dh50,000 pa. Rentals were at Dh40,000 pa in 2012. (Read: Dubai rent hikes: Discovery Gardens, Downtown put tenants under pressure)  

Although a few real estate agents show listing of Dh50,000 pa, but when checked the answer was usual: “It has been rented out. The one I have is Dh60,000 pa.” 

The Real Estate Regulatory Agency’s, the regulatory arm of Dubai Land Departments, rental index shows rents for one-bed between Dh50,000 to Dh60,000 pa. 

All feel the heat

And that’s not all. Landlords are informing existing tenants to pay 20 per cent or more rent when their contracts come up for renewals. 

“I am paying Dh36,000 pa for a studio apartment in Discovery Gardens and got an email from the property manager for a renewal, due in February 2014, rent at Dh45,000,” PB, a Discovery Garden resident, told this website.  

As per the Rera’s rent index, the landlord can increase rents by only 5 per cent i.e. Dh1,900 in PB’s case and not by Dh9,000. 

Why have the rents shot up? 

Mario Volpi, Managing Director, Prestige Real Estate, says: “Discovery Gardens is a very popular development of apartments close to Ibn Battuta Mall and, therefore, handy for any travellers that need to commute to Abu Dhabi.  

“They have a good mixture of individuals and are also sought after by the educational sector as many teachers reside there. I believe the rents appear to have skyrocketed in terms of percentage as they were starting from a much lower base.” 

Discovery Gardens consists of six themed communities inspired by garden living, and includes Zen, Mediterranean, Contemporary, Mogul, Mesoamerican and Cactus courtyard gardens. The development spans over 26 million square foot plot and has 291 buildings.