Dubai rents: Apartments higher than villas

Residential rents in Dubai rose marginally in October, but are up almost 18 per cent in the past 12 months, Reidin.com data reveals.

Apartment rental prices rose by 0.43 per cent on a month-on-month (m-o-m) basis, registering a year-on-year increase of 20.2 per cent. Villa rentals were up 0.29 per cent m-o-m and 6.6 per cent y-o-y.

Overall, residential rents rose 0.41 per cent in October, taking the annual increase to 17.8 per cent.

On the sales side, prices went up by 0.50 per cent m-o-m and 26.9 per cent y-o-y. Villa prices increased 0.70 per cent m-o-m and 14.4 per cent y-o-y.

Residential property sales prices rose 0.54 per cent in October 2014, Reidin.com said, adding prices increased 24.2 per cent y-o-y.

A poll conducted by Emirates 24|7 last month revealed that rents were rising, while a movesouq.com poll said that nearly 75 per cent of residents plan to move to new homes on lease renewal due to rent hikes.

Dubai has a rental slab in place that has to be followed by landlords when increasing rents.

Real Estate Regulatory Agency, the legal arm of Dubai Land Department, has always emphasised that tenants should approach the Rental Dispute Settlement Centre of Dubai Land Department in cases of higher rental hikes.

However, MPM Properties, the real estate subsidiary of Abu Dhabi Islamic Bank, said in its latest report that rents were falling in prime areas of the emirate as tenant demand diverts to other not-so-posh locations of the emirate.
 

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