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New Gardens project opens with 1,500 homes

By Parag Deulgaonkar

Over 1,500 new apartments will enter the lease market this year just in The Gardens community, Emirates 24/7 can reveal.

Leasing for four buildings in The Gardens Apartment project, owned by Nakheel, started in the second week of January.

“We have eight buildings in the Gardens Apartment project with a total number of 1,526 apartments (studios and one-bed). We have recently refurbished four buildings for which we are renting from January,” a company spokesperson said.

“The remaining four buildings will be leased based on market demand,” she added.

According to Nakheel’s December renting plan, a small studio is being leased for Dh24,890 in one cheque which rises to Dh27,250 in six cheques; a large studio is available for Dh30,770 in one cheque and Dh33,650 in six cheques.

A one-bed is being leased for Dh43,720 in one cheque and Dh47,500 in six cheques, while one-bed (large) Dh44,620 in one cheque and Dh48,500 in six cheques.

The rents are gross, inclusive of all the service charges and district cooling.

Tenants will have to pay 2.5 per cent of the annual base rent as leasing fee and Dh170 as Rera contract registration fee.

Earlier this month, we reported that Nakheel lowered rents in The Gardens by 15 to 20 per cent since December 2010 after chiller charges rose by almost 150 per cent in November.

One-bedroom apartments were being leased for Dh34,200 per annum if the tenant pays in one cheque and Dh40,000 per annum in six cheques.

But will the release of new units lead to fall in rents in neighboring communities such as Discovery Gardens or Masakin Al Furjan?

Parvees Gafur, Chief Executive Officer, PropSquare Real Estate, believes that there will have a reasonable demand on these newly released units over a period of time.

“Generally if you look through the community rental listings today, stock position has come down, in the current rental rates. Rents demanded by Nakheel on these new blocks are not hugely variant as to what ongoing there. Moreover, some of the blocks are also getting ‘old’, so these ‘new-builds’ will interest tenants,” he added.

Jones Lang LaSalle, earlier this month, said signs of rent and price stabilisation were partly visible in certain residential pockets of Dubai, but a broader recovery was likely by year-end.