Dubai Marina sees 95% hike in rents

Average advertised rents for two-bed and three-bed apartments in Dubai Marina in May were Dh195,184 and Dh203,266 per annum, respectively, according to dubizzle.com.

Lease rates for studios averaged Dh66,522 pa, while for one-beds it was Dh94,569 pa.

The Q1 2103 report by Asteco Property Management, however, puts lease rates at Dh50,000 pa for a studio, Dh75,000 pa for one bed, Dh100,000 pa for two bed and Dh135,000 pa for three bed apartments.

A comparison reveals that asking rents for two-bed units in Dubai Marina jumped by an astonishing 95 per cent, while studios, one- and three-beds saw hikes of 40 per cent, 26 per cent and 50 per cent, respectively.

According to dubizzle there are almost 17,412 properties listed for rent and sale in Dubai Marina with two bedrooms being the most searched apartment type, with total searches numbering 574,765 in May.

Jones Lang LaSalle (JLL), a global consultancy, said earlier that rentals have increased in the most sought-after areas such as Burj Downtown, Dubai Marina and Palm Jumeirah, while remaining stable in secondary and less completed locations.

"While well established residential communities in Central Dubai are expected to see further price and rental growth over the rest of 2013, less completed projects in more remote areas will need more time before seeing increased demand and performance," the consultancy said.

As of Q1, 2013, the total residential stock in areas monitored by JLL stood at around 357,000 units.

Average advertised prices for studios on dubizzle were Dh1.19 million. One-, two- and three-beds were in the range of Dh1.39 million, Dh2.26 million and Dh3.61 million, respectively.

On an average apartment sizes were: 519 square feet for studios, 929 for one beds, 1437 square feet for two beds and 2307 square feet for three beds.
JLL has said property sales prices in Dubai were 18 per cent higher in the first quarter of 2013 compared to same period last year. The Reidin general residential sale index, however, shows apartment index is 22 per cent lower than the peak values of Q3, 2008.

A recent report by Deutsche Bank said property prices in Dubai saw a 6.2 per cent growth in the first three months of 2013, though apartment prices remain between 43 and 61 per cent below peak prices.

Knight Frank, a global property consultant, said property prices in Dubai rose 18.3 per cent in the past one year (March 2012 to March 2013), with the emirate maintaining its position among the top five best performing real estate markets in the world.

Apartment prices remain between 43 and 61 per cent below peak with villa prices between 12 and 49 per cent below peak prices.

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