Dubai property market buoyant

Rents in Marina and Downtown jump 10% in Q2

Residential rents in Dubai continued to firm up for the second consecutive quarter of 2012 with areas such as Dubai Marina and Downtown Dubai registering an increase of 10 per cent in the second quarter compared to the first quarter.

Affordable communities such as Discovery Gardens also saw rents rising nine per cent quarter-on-quarter, while International City reported no rent decline, according to Asteco’s first half 2012 report.

Dubai’, which currently has 402,800 apartments and 58,300 villas, will see release of 11,600 apartments and 6,100 villas in the second half of 2012.

On the rental side, the property consultancy said a one- and two-bed apartments in Dubai Marina can now be rented for Dh70,000 and Dh90,000 per annum, respectively, while in Downtown, a one and two-bed apartment will cost Dh75,000 and Dh120,000 pa, respectively.

A one-bed apartment in Discovery Gardens is currently available for Dh40,000 (Dh35,000 in Q1), while a two-bed is for Dh60,000 pa (Dh53,000).

Overall, average apartment rents in the emirate gained six per cent while villas registered rise of nine per cent in the second quarter.

Elaine Jones, CEO, Asteco Property Management, in a statement, said: “Tenants are relocating in search of value-for-money, one- and two-bedroom apartments as well as three- and four-bedroom villas are the preferred unit types. In terms of rates, quality well managed developments, will continue to set the pace.”

Mirdiff gains

Among the villa communities, Mirdiff reported the largest increase with rent for a three-bedroom villa increasing to Dh90,000 per annum, a 13 per cent gain from the first quarter.

A three-bedroom villa in Arabian Ranches is now costing Dh140,000 per annum, 11 per cent over the last quarter, the report said. Rents in Jumeirah Islands rose 11 per cent while Palm Jumeirah jumped 7 per cent.

On Sunday, Knight Frank’s prime global rental index said prime residential rents in Dubai had risen one per cent in the first quarter 2012, but year-on-year had declined by 3.9 per cent.

Downtown, Marina, Palm popular

Apartments in Downtown Dubai, Dubai Marina and Palm Jumeirah remained most popular among buyers, witnessing price increases of nine per cent to Dh12,900 per square metre, eight per cent to Dh10,750 per square metre and eight per cent to Dh14,000 per square metre, respectively, in the second quarter.

Prices in Jumeirah Lakes Towers, Greens and Dubai International Financial Centre (DIFC) remained relatively stable, at Dh7,000 per square metre, Dh8,600 per square metre and Dh14,000 per square metre, respectively. Prices in Jumeirah Beach Residence jumped three per cent to Dh10,250 per square metre.

Ranches dominates

Sales price increases for villas were dominated by Arabian Ranches (16 per cent increase), the Springs (14 pre cent) and Jumeirah Islands (11 per cent).

Villas on the Palm Jumeirah were the most expensive in Dubai at Dh17,200 per square metre, followed by Jumeirah Islands and the Meadows priced at Dh10,750 and Dh10,250, respectively. The lowest prices were in Jumeirah Village at Dh5,400 per square metre.

Last month, Emirates 24/7 reported that Emaar Properties had launched 62 townhouses in Alma 2 cluster in Arabian Ranches with the units priced between Dh1.4 million and Dh2.2 million.

“Sales prices will continue to rise for quality developments, especially villas, while further supply along Emirates Road will restrain growth,” Asteco pointed out.

Total office supply

According to the report, Dubai currently has 9.1 million square metres of office space, while about 770,000 square metres of new space will be released in the second half.

In the first half, approximately 5,000 apartment units handed with the majority located in Dubai Marina, Downtown Dubai, Sheikh Zayed Road, Dubai Silicon Oasis and International City.

Jumeirah Village and Deira saw the bulk of villas come on line, while Business Bay, DIFC and Sheikh Zayed Road delivered the majority of office supply.

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