Dubai_Rents in many areas
of Dubai look likely to continue to decline, particularly in those with
new projects coming online, say agents. The dramatic drop in apartment
rental rates is a result of the exodus of some of Dubai's expatriate
workforce and the increase in new supply, according to the CB Richard
Ellis second quarter 2009 report.
Lower sales prices and
lease rates in freehold locations have made landlords more flexible in
payment terms, with 6 to 12 cheques becoming more common, CBRE found.
Billy Rautenbach,
director of operations, Better Homes, says rental rates in some areas
are stabilising. "There is some downward pressure on areas that have a
larger supply than demand. The more sought-after locations with
specific property types are maintaining prices."
Areas with large
quantities of stock for example, Discovery Gardens and Jumeirah Lakes
Towers (JLT) may see rental rates fall even more, says Rautenbach.
Landmark Advisory's July Dubai Leasing Map reported marginal rent
growth in some areas, while rates in others continued to fall.
Aman Rupani, managing
director, Fine and Country, expects further downward pressure on rents
due to the upcoming delivery of projects. "Downtown Dubai has just seen
the delivery of Burj Views, which has the lowest available rent rates
for comparable units in Downtown Burj Dubai. The Lofts will add further
units to the area in December and may push rental rates further down.
"Likewise, Discovery
Gardens, JLT and Dubai Marina will have many more buildings available
for occupancy from now until the end of the year. All areas have been
affected with rent decreased by at least 30%. If you were paying
Dh150,000 on Palm Jumeirah for a one-bedroom seaview apartment, you
will now expect to pay Dh100,000. A one-bedroom in JLT which was rented
last year at Dh100,000 will most likely fetch Dh65,000-Dh70,000.
Villas, apartments, and offices have all experienced significant falls
in their rental rates," says Rupani.
Of the non-freehold
areas, rents have declined most in Al Nahda and Al Barsha, according to
the CBRE survey. In the latter, one-bedroom apartments currently range
from Dh60,000-65,000, compared to Dh90,000-Dh100,000 in Q2 2008. In
some areas, Landmark found that rate movements are dependent on unit
size. In Arabian Ranches, rents for two-bedroom villas fell by
Dh10,000-Dh20,000 in July, while three-bedroom villa rents increased by
Dh10,000 and five-bedroom villa rents rose by Dh50,000. A similar trend
was noted in The Greens.
Landmark reported that overall rates in Jumeirah Beach Residence are increasing.
Colliers reports Dubai house prices dip 9%
Dubai_According
to the Q2 2009 House Price Index for Dubai published by Colliers
International, the overall value of residential properties in Dubai
fell by 9% between April and June 2009. The index also indicated a 48%
year-on-year decline between Q2 2008 and Q2 2009. At the end of Q2 2009
prices had returned to the same level as those recorded in Q2 2007, and
were down 50% from their peak in Q3 2008.
Real estate firms sign up with Emcredit
Dubai_Emcredit, a
credit information services company which is backed by the government,
has announced that two Dubai real estate firms, Landmark Properties and
New England International Real Estate have integrated emBounce, its
cheque-reporting service into their business processes. The service
provides information on the cheque-honouring and payment habits of
existing and potential tenants.
Dubai_Mall trawlers
have a new place to buy furniture with Index Living Mall opening its
doors at Dubai Mall. The shop, which is spread over 50,000ft², is the
largest home retail chain in Asia.
Index offers a wide selection of home accessories and furniture at reasonable prices ideal in such penny-pinching times.
With a floor layout
similar to Ikea's, Index can arrange for assembly and delivery of
furniture and household items. The shop also has in-house 'Healthy
Sleeping Specialists', who will provide customers with free consultancy
based on back and spine physiology and help you select the most
suitable mattress.
