Dubai 2016 rent index: One-bed units cheaper… Click for where, how much
Index will now be updated only once and not thrice a year: Dubai Land Department
The official rent index of Dubai has been updated for 2016 and a data comparison done by Emirates 24|7 for one-bedroom apartments across the emirate’s freehold communities reveals rents are down by up to 11 per cent.
The new rent index, which this website reported will be updated only once a year, puts decline of 4.55 per cent to 11.11 per cent for one-beds in Business Bay, with lease rates ranging from Dh80,000 to Dh105,000 per annum (pa) compared with Dh90,000 to Dh110,000 pa in 2015.
International City reported a rental decline of 5 to 10 per cent, with lease rates between Dh38,000 to Dh45,000 pa as against Dh40,000 to Dh50,000 in 2015.
Rentals for one-beds in Jumeirah Lakes Towers currently range between Dh75,000 and Dh90,000 pa, down by 5 to 6.67 per cent. In 2015, rentals stood between Dh80,000 and Dh100,000 pa.
The index further revealed rentals for single bedroom units in Dubai Marina, to be between Dh90,000 to Dh110,000 pa, down by 8.33 per cent, from Dh90,000 to Dh120,000 pa in 2015.
Palm Jumeirah saw one-bed rentals drop by 3.125 per cent to 7.69 per cent with annual rates ranging between Dh120,000 and Dh150,000, compared with Dh130,000 to Dh160,000.
Rents, as below, remained stable for one-beds in a majority of freehold locations.
Dubai Silicon Oasis: Dh50,000 to Dh70,000 pa
Dubai Investment Park: Dh40,000 to Dh50,000 pa
Jumeirah Village: Dh55,000 to Dh70,000 pa
Arjan: Dh35,000 to Dh45,000 pa
Greens: Dh80,000 to Dh90,000 pa
Dubai Sports City: Dh60,000 to Dh75,000 pa
Tecom: Dh70,000 to Dh80,000 pa
Sky Courts (Dubailand): Dh45,000 to Dh55,000 pa
International Media Production Zone: Dh50,000 to Dh55,000 pa
In order to control arbitrary rental hikes, the Dubai government has already issued Decree No. 43 of 2013 concerning the percentages of maximum property rent increase that are to be allowed upon renewal of tenancy contracts. The rent increase slabs are as follows:
# No rent increase if the rent of the property unit is less than 10 per cent of the average rent of a similar property in the same residential area.
# If the rent value is between 11 and 20 per cent less than the average rent of a similar property, the maximum rent increase shall be equal to 5 per cent of the rent value.
# If the rental value of a unit is between 21 and 30 per cent less than the average rent of a similar unit, the maximum rent increase shall be equal to 10 per cent of the rental value.
# If the rental value of a property is between 31 and 40 per cent less than the average rental of a similar property, the maximum rent increase shall be equal to 15 per cent of the rental value.
# If the rental value of a property unit is less than 40 per cent or more of the average rent of a similar unit, the maximum rent increase applicable is of 20 per cent.
The decree also informs that the average similar rental value of the property will be determined by the rent index.
By Parag Deulgaonkar
Published Monday ,January 04, 2016.