Rents for two-bedroom apartments in majority of freehold areas across Dubai declined or remained stable, according to a comparative analysis of the official rent index for 2016 and 2017.
Dubai Marina registered a 14 percent decline in 2017, with rentals for two-bed units starting at $32,672 (AED120,000) to $43,563 (AED160,000) per annum (pa) compared to $38,118 (AED140,000) to $49,009 (AED180,000) pa in 2016.
Lease rates fell by 11.76 percent for Palm Jumeirah, where rentals range from $40,841 (AED150,000) to $59,900 (AED220,000) pa. In 2016, rentals were priced between $46,286 (AED170,000) and $ 59,900 (AED220,000) pa.
Rents in Greens community declined 3.44 to 8.33 percent, with leases ranging from $29,950 (AED110,000) to $38,118 (AED140,000) pa.
However, the steepest increase was registered in Arjan community in Dubailand. Rentals increased by 25 to 30 percent to $17,698 (AED65,000) to $21782 (AED80,000) pa this year compared to $13,614 (AED50,000) to $17,698 (AED65,000) pa in 2016.
Rents continued to remain stable in Business Bay at $29,950 (AED110,000) to $38,118 (AED140,000) pa; International City at $12,252 (AED45,000) to $16,336 (AED60,000) pa, and Discovery Gardens at $19,059 (AED70,000) to $21,782 (AED80,000) pa.
Dubai’s official rent index is being updated once a year from 2015. Prior to that, the index was updated every four months.
Dubai Land Department deputy chief executive officer, rental affairs, Mohammed Ahmed Yahya told Arabian Business in December that the new version of the index will be released in 2018 after completion of the building classification survey.
The classification survey gives each building in the non-freehold and freehold communities a “star rating”, allowing landlords in buildings with higher ratings to charge higher rents than neighbouring houses.
In its recent report, property consultancy firm CORE said rents in the emirate’s suburban areas will decline by 4 percent this year, driven by delivery of over 20,000 new units. It put average 2016 rent decline at 5 percent.