Rents in Dubai’s Springs up by 60%
Rents for two bed villas in the Springs community have jumped by 35 to 60 per cent in the past one year, while three-bed units saw a 20 per cent rise, a comparison done by Emirates 24|7 of Real Estate Regulatory Agency’s (Rera) rental index reveals.
The first rent index of 2013 had put rents for two-bed villas at Dh75,000 to Dh100,000 per annum and three-beds at Dh150,000 to Dh200,000 pa. The first update for 2014 now states rates at Dh120,000 to Dh135,000 pa for two-beds and Dh180,000 to Dh200,000 pa for three-bed villas.
But when compared to online classified listings, the index rates are still lower than the current market rate.
Two-bed villas are currently listed at Dh120,000 to Dh160,000 pa and three beds were being leased for Dh190,000 to Dh240,000 pa.
Parvees Gafur, Chief Executive Officer, PropSquare Real Estate, told Emirates 24|7: “There is always a demand for the units in the Springs, considering it as the most established townhouse community close to Sheikh Zayed Road. With access to majority of the prominent schools and with community facilities and services, they are a step ahead when compared to similar districts.
“Probably with the rents having gone up it could have restricted tenants to upgrade themselves to bigger properties within the community.”
The community, he says, has always been a major hit with the Europeans and affluent Asians.
In its fourth quarter 2013 report, Jones Lang LaSalle cited Reidin, saying villa rental index had reached its highest value since the creation of the index in January 2009, rising by 13 per cent year-on-year.
The global consultancy expects rents and prices will continue to increase during 2014, but the rate of growth will decline from the levels witnessed during 2013.
The Springs, developed by Emaar Properties, comprises townhouses built around man-made lakes. Properties here range from two-bedroom to four-bedroom townhouses and are located close to The Greens and The Meadows.
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