Rents across Dubai’s major master communities have risen by 8 to 20 per cent in the first rental index update of 2014 compared to the last rent index of 2013, Emirates 24|7 can reveal.
The index is updated by Real Estate Regulatory Agency (Rera), the regulatory arm of Dubai Land Department, every four months.
Lease rates for studios in International City, Dubai Investment Park and Discovery Gardens have gone up by 16 to 20 per cent in the new index compared to the final update of 2013.
Studio rents in International City now range between Dh30,000 to Dh35,000 per annum, while rents for studios in Dubai Investment Park, Dubai Silicon Oasis and Discovery Gardens are currently between Dh25,000 and Dh35,000 pa, Dh35,000 and Dh40,000 pa and Dh40,000 to Dh45,000 pa, respectively.
Downtown Dubai continues to remain the most expensive community to rent a studio though the rents have remained stable compared to the last rent index update. Rents range between Dh65,000 and Dh75,000 pa.
Rents for one- and two-bed apartments remain the lowest in International City. One beds are available for Dh35,000 to Dh45,000 pa, while two-beds vary between Dh45,000 and Dh55,000 pa followed by Remraam, Dubai Silicon Oasis and Dubai Investment Park.
Lease rates of one and two-bedroom apartments in Palm Jumeirah have gone up between six and nine per cent. The new index puts rents for one beds at Dh130,000 to Dh160,000 pa and two beds at Dh180,000 to Dh230,000 pa.
Similarly, rents in Dubai Marina stand at Dh90,000 to Dh120,000 pa for one beds and Dh140,000 and Dh170,000 pa for two beds.
Lease rates for two beds in Jumeirah Lake Towers rose between 15 and 20 per cent. As per the latest index, rents range between Dh120,000 and Dh150,000 pa.
In December, Dubai government issued Decree No. 43 of 2013 concerning the percentages of maximum property rent increase that are allowed upon the renewal of tenancy contracts.
Although currently the index is still in its old avatar, a more detailed index that will include views of an apartment and facilities offered in a tower, etc, is expected to be released this year.
Apartment rents (Dh per thousand)
Community Studio One-bed Two-bed
Int’l City 30-35 35-45 45-55
Silicon Oasis 35-40 60-60 60-75
Remraam 35-40 45-55 60-75
Dubai Invt Park 25-35 40-50 60-80
Discovery Gardens 40-45 55-65 70-85
Sports City 40-45 55-65 75-85
Business Bay 60-70 80-100 120-140
Downtown 65-75 90-110 160-190
Dubai Marina 55-70 90-120 140-170
JLT 55-75 80-100 120-150
Palm Jumeirah ---- 130-160 180-230
(Rent index udpated in January 2014)