Dubailand rents become more affordable

If you are looking for a good rental deal this summer, try Dubailand. Market experts estimate supply in the new community to reach around 4,200 units of which 60 per cent will come into the lease market.
 
Studio rents currently start from Dh20,000 per annum, while one- and two-bed units are available from Dh30,000 and Dh40,000, respectively, compared to Discovery Gardens studio rent of Dh23,000 with one- and two-bed units being leased from Dh31,000 and Dh51,000, respectively.
 
Parvees Gafur, Chief Executive Officer, PropSquare Real Estate, says: “As per our estimate, approximately 3,400 apartment units and 800 villas have completed. Most of the units are in handover phase though as we stand now. And about 60 per cent is being witnessed coming back to the lease market.”
 
Landmark Advisory believes the total supply of Dubailand, which consists of Arabian Ranches, Motor City, Layan Community, Al Barari, The Villa, Sports City and Falcon City, is 11,000 units.
 
“However, it is difficult to estimate of how many are currently for lease in the market,” a company spokesperson added.
 
According to PropSquare, studio are being rented at as low as Dh20,000, one beds start from Dh30,000, while two beds are available from Dh40,000.
 
“Again this depends on the number of cheque/payment option that has been taken,” Gafur adds.
 
Landmark says Sports City offers the cheapest in terms of apartment rents with studio available for Dh22,000, one bed for Dh40,000 and two-bed for Dh52,000 per annum.”
 
Cluttons, a global real estate consultancy, in a recent report said apartment rents in Dubai’s lower end of the market fell eight to10 per cent in the first quarter compared to the last quarter of 2010.
 
Asked if more people were moving from other affordable housing communities to Dubailand, Gafur mentions: “We don’t witness this transition from affordable communities such as Discovery Gardens to the new Dubailand. They are established communities with the infrastructure and services and doesn’t motivate these tenants. More of the migration is from other emirates.”
 
According to Landmark, villas in the new community are attracting a number of tenants.
 
“Tenants moving to the Villa project as this area now offers good value for money. Although the development is still suffering from infrastructure problems, tenants seem to overlook due the relatively low rents within. Four bedroom villas start at Dh130,000 per annum while 5 bedroom around AED 200,000 per annum,” the spokesperson adds.
 
Asked if rents will fall further this year in Dubailand, Gafur says that as new stock enters the community, it could trigger a slight drop, but nothing that could be substantial as the rents already fall in the affordable category.
 
Landmark believes certain communities such as Sports City will witness a rental decline as the residential supply coming online in surrounding developments will compete directly with this area.

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