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Residential and Commercial Rents Unchanged in Dubai

DUBAI — Residential and commercial rents in Dubai remained unchanged during January compared to December last year despite the fact that people are still looking to upgrade, a survey by the Khaleej Times and property management company Asteco found.

Residential rents are reasonable and people are still upgrading in terms of size, quality and location, the Asteco study said.

The property management company said that new inventories will increase competition in the coming months and landlords will come up with reduced rents, flexible payment and contract terms.

Demand from Abu Dhabi remained steady for units in new Dubai areas such as Discovery Gardens, Jumeirah Lake Towers and Dubai Marina. People from Northern Emirates opted for units in Al Nahdah, Al Warqaa and Mirdiff.

In several upscale neighbourhoods and projects, the average annual rent in January for a studio ranged from Dh50,000 to Dh60,000, while one-bedroom units were still ranging from Dh85,000 to Dh120,000. A two-bedroom flat was priced at Dh120,000 to Dh160,000, while a three-bedroom unit was priced at at Dh160,000 to Dh210,000, the survey found.

Areas with these rents include Dubai Marina (eg: Marina Promenade, Emaar Six Towers), Downturn Burj Dubai, Palm Jumeirah, Sheikh Zayed Road and World Trade Centre.

In the mid-tier neighbourhoods of Bur Dubai, Al Barsha, the Greens, Jumeirah Beach Residence and Dubai Marina, a studio in January went for Dh35,000 to Dh50,000, a one-bedroom flat was ranged from Dh55,000 to Dh75,000, a two-bedroom flat was priced at Dh70,000 to Dh100,000, and three-bedroom units went form Dh90,000 to Dh120,000, the survey showed.

Average annual rents were cheaper in International City, Discovery Gardens, Deira, Jumeirah Lakes Towers and some parts of Dubai Marina.

A studio in these locations was priced at Dh26,000 to Dh40,000, and a one-bedroom unit at Dh38,000 to Dh65,000. A two-bedroom flat was priced at Dh60,000 to Dh85,000, while a three-bedroom unit went for Dh90,000 to Dh110,000.

Office rents are unchanged for the last three months as enquiry level fell due to low demand.

Companies are moving from locations such as Deira to Bur Dubai or Sheikh Zayed Road. They are looking for better location and reduced rates. Four cheques and incentives such as rent-free periods are standard.

Demand is also seen for slightly bigger units (2,000-4,000 square feet), fully fitted space and is coming from legal and logistics companies.

Complete infrastructure, ample parking, easy access to major road networks and excellent property management are vital for the take-up of office space.

According to the survey, the average annual rent for premium commercial locations such as Dubai International Financial Centre, Downtown Burj Dubai and Sheikh Zayed Road was between Dh150 and Dh370 per square foot per annum.

In Jumeirah Lakes Towers, Bur Dubai, Tecom, Downtown Jebel Ali and Festival City, office rents ranged from Dh55 to Dh170 per square foot per annum.

In Deira, Dubai Silicon Oasis and Dubai Sports City, office rents ranged from Dh50 to Dh100 per square foot per annum in January.

· abdulbasit@khaleejtimes.com