Despite the peak hour traffic jams in Jumeirah Beach Residence (JBR), residential rents in the master community have not plunged.
In fact, they are on the incline with average lease rates for two- and three-bedroom apartments having shot up by more than 20 per cent in the first quarter compared to fourth quarter 2011.
According to data from Dubai-based Harbor Real Estate, two-bedroom apartments were being leased for Dh100,000 to Dh120,000 per annum in the first quarter compared to Dh80,000 to Dh110,000 in September 2011.
Three-bedroom units are available in the range of Dh130,000 to Dh150,000 pa (Dh105,000 to Dh150,000), while one-bed apartments were rented for Dh75,000 to Dh90,000 (Dh65,000 to Dh80,000).
Information provided by PropSquare Real Estate reveals rents for two-bed units to be in the Dh100,000 to Dh120,000 pa range as against Dh80,000 to Dh90,000 pa in Q4, 2011, while rates for three-beds ranged between Dh135,000 and Dh145,000 pa (Dh110,000 to Dh120,000 pa).
Rents for one-bed units stood at Dh70,000 to Dh80,000 pa compared to Dh60,000 to Dh70,000 pa.
According to Asteco’s first quarter report, rents in JBR rose four per cent quarter-on-quarter with one, two and three beds available for Dh70,000, Dh90,000 and Dh115,000 pa, respectively.
JBR is among the prime freehold localities in Dubai. It faces 1.7 kilometres of beach that features luxury hotels, retail outlets and restaurants and houses 36 residential towers.
Global Investment House (GIH), in a new GCC real estate sector report, said rents have started to increase in selective areas of Dubai after the pace of rental income slowed down significantly in 2011.
“The pace of decline in Dubai rents slowed down significantly in 2011 and is starting to shift gradually into selective increases in areas of higher quality and demand,” GIH said.
In Dubai, GIH estimates the market is currently 20 per cent oversupplied that means 67,000 units are currently vacant.