Wednesday, April 23, 2008

Rental rates for residential units in Dubai found to be stable

Dubai Rental Rates
UAE's largest real estate services company, Asteco, has observed that there has been no significant change in Dubai's annual rents, during the first quarter, compared to the annual rent rates during the last quarter of 2007, reveals their Quarterly Residential Report.

The highest annual rents have been recorded at the Palm Jumeirah and Old Town Burj Dubai, with studio and single bedroom annual rents standing at Dh.100,000 and Dh.140,000 respectively. On the other hand, the lowest rentals have been noticed at International City with studios available for Dh.42,000 and single bedrooms for Dh.58,000.

When compared on an annual basis, the rental charges were the highest at the Greens in Dubai, with studios recording an average annual rent of Dh.65,000 to Dh.85000, marking a 31% increase. But, the double bedroom units at the International City saw a 36% increase in rents from Dh.70,000 to Dh.95,000 during the same period last year.

Other areas that witnessed a year-on-year rental increase were the Old Town Burj Dubai real estate development, which reported 17% increase for single bedroom units and 21% increase for double bedroom apartments.

As for villas in Dubai, the rental rates are determined on the basis of location, size and condition with Midriff commanding the lowest rate, while Jumeirah marked the highest due to its close proximity to beach and Sheikh Zayed road. The average annual rent for a four bedroom villa at Mirdiff was marked at Dh.175,000, and a similar property at the Arabian Ranches and Jumeirah would rent at Dh.300,000.

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