Rents fall across Dubai’s Karama, Oud Metha and Al Barsha areas

Rents fall across Dubai’s Karama, Oud Metha and Al Barsha areas
Lease rates remain stable in Al Khail Gate and Al Satwa
By emirates 24/7 News
Published Thursday, January 07, 2016

Rents fall across Dubai

Rentals in Karama, Al Barsha and Oud Metha have fallen by up to 10 per cent in 2016, according to the Dubai’s official rent index.

Rates for one-bed units in Oud Metha dropped 7.14 per cent, with leases starting at Dh65,000 to Dh80,000 pa. In 2015, leases were at Dh70,000 to Dh80,000 pa. Rates for studio units and two beds in the area remained at Dh40,000 to Dh50,000 pa and Dh85,000 to Dh110,000 pa, respectively.

In Karama, the decline in rentals ranged between 6.25 per cent and 10 per cent. Rates for studio units are down 10 per cent, with leases starting at Dh40,000 to Dh45,000 pa compared to Dh40,000 to Dh50,000 pa in 2015.

Rentals for one beds declined 6.25 per cent to 8.33 per cent with lease rates starting at Dh55,000 to Dh75,000 pa as against Dh60,000 to Dh80,000 pa. Rates for two beds range between Dh75,000 and Dh90,000 pa, down 6.25 per cent to 10 per cent, compared to Dh80,000-Dh100,000 pa in 2015.

In Al Barsha, rates for one- and two-bed units fell 5.88 to 9.09 per cent. The former can be leased for Dh65,000 to Dh80,000 pa, while the latter can be rented for Dh90,000 to Dh100,000 pa.

There was no change in rents in Al Qouz 2 (Al Khail Gate). Studio rents, as per the 2016 index, ranges from Dh30,000 to Dh40,000 pa, one beds Dh45,000 to Dh50,000 pa and two beds Dh65,000 to Dh70,000 pa.

Similarly, rents remained at the same level in Al Satwa. Leases for studio, one- and two-bedroom apartments stay at Dh35,000-Dh40,000, pa, Dh45,000-Dh60,000 pa and Dh65,000 -Dh75,000 pa, respectively.

In August 2015, this website reported that the official Dubai rent index will no longer be updated every four months, as done since 2009 when it was launched.

“The rental index now is being updated once per year, starting from 2015,” the Dubai Land Department (DLD) said in an emailed statement sent to this website.

Read: Dubai 2016 rent index: One-beds cheaper… where, how much

Rent Law

In order to control arbitrary rental hikes, the Dubai government has already issued Decree No. 43 of 2013 concerning the percentages of maximum property rent increase that are to be allowed upon renewal of tenancy contracts. The rent increase slabs are as follows:

# No rent increase if the rent of the property unit is less than 10 per cent of the average rent of a similar property in the same residential area.

# If the rent value is between 11 and 20 per cent less than the average rent of a similar property, the maximum rent increase shall be equal to 5 per cent of the rent value.

# If the rental value of a unit is between 21 and 30 per cent less than the average rent of a similar unit, the maximum rent increase shall be equal to 10 per cent of the rental value.

# If the rental value of a property is between 31 and 40 per cent less than the average rental of a similar property, the maximum rent increase shall be equal to 15 per cent of the rental value.

# If the rental value of a property unit is less than 40 per cent or more of the average rent of a similar unit, the maximum rent increase applicable is of 20 per cent.

The decree also informs that the average similar rental value of the property will be determined by the rent index.

Posted on January 7, 2016 in Dubai news, Property, Real Estate

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