Rents in older Dubai neighbourhoods on the rise

Dubai - Deira registered price increases due to consistent demand from occupants and no new supply.

Dubai Marina continues to be the most favoured community among residents in the city, with the location accounting for over 20 million searches in Q2 2015, according to a dubizzle report.
The report reveals that 4.9 million searches were made for one-bedroom apartments in Dubai Marina between April and June this year. Sales prices of studio and three-bedroom apartments, however, saw a decrease of 18 per cent and 14 per cent respectively.
Another popular upmarket community, the Palm Jumeirah saw an increase in sales prices of studios and two-bedroom apartments, climbing from Dh1.45 million to Dh1.54 million and Dh3.2 million to Dh3.35 million respectively.
Market prices in older areas of Dubai are gradually getting better aligned with property prices in newer communities.
Deira registered price increases due to consistent demand from occupants and no new supply. The rent of studio apartments rose by 18 per cent in Deira and those in Bur Dubai rising from Dh60,000 to Dh65,000. Rent for three-bedroom apartments also increased from Dh150,000 to Dh158,000.
Abu Dhabi has also seen rental price hikes, with two-bedroom apartments on Saadiyat Island increasing by over 10 per cent and three-bedroom apartments climbing from an average of Dh210,000 to Dh240,000.
Al Reem Island was the most searched for community in the UAE capital, with over two million searches in Q2. Two-bedroom apartments were the most searched for property type, with more than 123,000 searches.
Mussafah East, Mohammed Bin Zayed City and Khalifa City remain the most affordable areas in Abu Dhabi to rent. However, price hikes are spilling over into the most affordable districts, with rents increasing up to 13 per cent.
Mussafah East one-bedroom apartments witnessed an increase in rents from Dh48,000 to Dh54,000 and in Khalifah City A, prices rose from Dh50,000 to Dh55,500.
Ann Boothello, product marketing manager for property at dubizzle, said: "The Dubai property market is softening as per the price changes experienced in Q2 this year. Older areas in Dubai showed price increases reflecting consistent demand for units and the alignment of prices with those in newer areas in Dubai. For example, a studio in Bur Dubai rents for Dh65,000 annually and in Dubai Marina at Dh70,000."
"Prices of properties for sale decreased across Dubai, with the exception of studios and two-bedroom apartments on the Palm Jumeirah which increased by up to six per cent," she added.
- business@khaleejtimes.com