Tide turns as Dubai rents take a dip

This content was originally posted in 7DAYS UAE website at: Tide turns as Dubai rents take a dip The new year has started on a happy note for property renters with real estate agents saying prices have dropped slightly in several areas of Dubai. This comes as the Dubai Land Department’s Real Estate Regulatory Authority (Rera) updated its rental calculator that provides leasing rates for properties across the city for this year. Independent analysis of the Rera data shows a decrease between 3 per cent to 14 per cent in several areas around Dubai, including Dubai Marina, International City and Jumeirah Beach Residence. Kunal M, of Insight Properties, said that renting a property in Dubai has become cheaper. “There has been a fall in prices which means as compared to the rates last year, this year apartments will be cheaper. The areas that will expect a fall in prices would be Dubai Marina, Discovery Gardens, Jumeirah Beach Residence and Jumeirah village among others,” he said. The calculator is an online tool for determining rental increases as it gives price ranges for properties in Dubai and helps people find out if the prices are within the market rates. One of the reasons for the drop in the rent price is thought to be the high number of new properties in the emirate. Akbar Akhtar, from River City State, said: “Prices have fallen in most parts of Dubai, which is positive for people as an increase would force them to move places. But a decrease will support them long term.” However, Akbar said rents in some areas, such as Downtown, have gone up. “The rental index for this year as compared to last has gone up by about Dhs5,000 to Dhs115,000 or a one bedroom apartment as compared to Dhs110,000 last year,” he said. And Ruslan Raahimkulov, of Propertyssimo, believes rents have fallen because of a drop in property sales prices. “In some areas, such as the Palm Jumeirah, the properties are overpriced and in the latest year there has been a drop in rent prices by some 14 per cent, while in other areas the drop is not that visible,” he said. Raahimkulov said that the Rera rent index was an essential tool to control prices in the city. “At a renewal of every contract we have to go back to the index and landlords know that they will get in trouble with Rera if their rates are too high,” he said.   mahak@7days.ae Read the original story at: Tide turns as Dubai rents take a dip