We’ve all been hearing speculations and rumours about changes in rental prices, but so far there hasn’t been any concrete information for price change per area. propertyfinder.ae brings you the exact figures on areas where prices have dropped in the second quarter of 2015.
According to Lukman Hajje, Chief Commercial Officer at propertyfinder, the changes in the real estate market will continue at least until the year’s end. “Downtown rental rates have decreased ~6% in Downtown this year and could drop further once if these projects are delivered & handed over on time. So for tenants it will mean more choice and better bargaining power at least in the short to medium term,” he explained.
In addition to tenants, Mr. Hajje also believes that this might be a great time for potential investors to land great deals: “From an investor perspective the Marina and JBR represent good opportunities for strong yields over the medium term as work progresses on the Blue Water project which will make this area even more attractive. There are over 6,000 units under construction in this area which will add ~20% to total supply. Investors ready who are ready to buy are in a good position to negotiate and some excellent opportunities currently exist.”
Sheikh Zayed Road
Rent has dropped an impressive 5% in the second quarter of 2015 compared to the second quarter of 2014. With 1BR apartments ranging between 95,000AED and 125,000AED, whereas 2BR apartments are going from 110,000AED to 170,000AED.
Similarly to SZR, Motor City has seen a decrease in rent of 5%. 1BR apartments can be rented for as low as 60,000AED, and 2BR apartments start from 115,000AED.
Rent in Jumeirah Lake Towers has decreased by 4% from Q2 of 2014.
JBR and Dubai Marina
Both JBR and Dubai Marina have seen a decrease in rental prices by 7%, but JBR remains slightly more expensive than Marina, with apartments starting from 80,000AED while in Marina they start from 60,000AED.
Jumeirah Village Circle
Jumeirah Village Circle remains one of the more affordable residential areas. However, this year prices have dropped by 3%.
Downtown Dubai remains the most luxurious area for apartments in Dubai. Rent has dropped by 2% from last year’s first quarter. 1BR apartments can be found ranging between 95,000AED and 110,000AED, and 2BR apartments ranging from 135,000AED and 165,000AED.
Business Bay has decreased by a slight 2%, however, this area is on the top on the availability chart, with thousands of available apartments to choose from. You can find apartments for rent in Business Bay starting from 69,000AED.
Al Barsha rental prices have decreased by a whopping 10% in Q2 of 2015.
Villa rental prices in Jumeirah a=have dropped by 2% in the second quarter of 2015 compared to the same period of time last year. 3BR villas range between 165,000AED and 270,000AED, while 4BR villas range between 180,000AED and 400,000AED.
Rent has dropped in one of the most expensive residential villa areas in Dubai by 6%, with rent in the Palm Jumeirah starting from 180,000AED.
Jumeirah Village Circle
JVC is witnessing a decrease in rental prices by 4%, helping it remain in one of the most affordable residential communities in Dubai, with villa rentals ranging from 140,000AED to 155,000AED.
Villa rentals in the Springs have decreased by 9%. 2BR villas range between 120,000AED and 140,000AED, while 3BR villas range between 160,000AED and 215,000AED.
A significant decrease in Mirdiff villa rentals by 7%, with villas starting from 120,000AED.
Arabian Ranches recorded the highest decrease in villa rentals at 15% from last year’s first quarter.
Meadows, the slightly more expensive neighbor of the Springs, has seen an 8% decrease in rental prices.
Unlike apartments, rent for Al Barsha villas has only dropped by 3%, but prices remain relatively affordable compared to other areas.