Rents for studio apartments in old Dubai rise by up to 18%

Dubizzle report puts Mussafah East as most affordable area in Abu Dhabi
By 24/7 News
Published Friday, August 14, 2015

Rentals in old Dubai are rising, with studio units in Deira reporting an 18 per cent rental increase, in the second quarter 2015, according to a report by Dubizzle. The rental price of studio apartments increasing by 18 per cent in Deira and those in Bur Dubai registered 8.3 per cent increase, jumping from Dh60,000 to Dh65,000 per annum (pa), with three-bedroom apartments rose 5.33 per cent from Dh150,000 to Dh158,000 pa, the classified website said. Increase in rental prices in old Dubai were driven by a maintained demand by its occupants as no additional new supply coming in. “The market prices in these so called ‘older’ areas even though cheaper than many newer Dubai communities, are shifting to be better aligned with property prices in newer communities,” the report said. Sales prices for Dubai Marina fell 18 per cent and 14 per cent for studio and three-bedroom apartments, respectively. However, the community, which houses four of the world’s tallest towers, saw almost 4.9 million searches for one-bedroom apartments in the second quarter, the report said, adding there were almost over 20 million searches for the area. Palm Jumeirah saw prices for studio units going up from Dh1.45 million to Dh1.54 million while two-bedroom apartments saw prices jump from Dh3.2 million to Dh3.35 million. “The Dubai property market is softening as per the price changes experienced in Q2 this year. Some areas have experienced while older areas in Dubai showed price increases in reflection to a maintained level of demand for these older units and the alignment of their prices with those in newer areas in Dubai,” Ann Boothello, Product Marketing Manager for property, Dubizzle, said. Abu Dhabi rents up Lease rates in Abu Dhabi also witnessed increases, with two-bedroom apartments on Saadiyat Island rising by over 10 per cent and three-bedroom apartments climbing by 14.28 per cent from an average of Dh210,000 to Dh240,000 pa. Al Reem Island was the most scouted for community, with over 2 million searches in the second quarter. Two-bedroom apartments were the most popular searched for property type with more than 123,000 searches. Mussafah East, encompassing Mohammed Bin Zayed City and Khalifa City, remained the most affordable areas in Abu Dhabi to rent, the report said. However, rising prices are even spilling over into the most affordable districts, with rental prices increasing up to 13 per cent. One-bedroom apartments in Mussafah East witnessed prices an increase by 12.5 per cent from Dh48,000 to Dh54,000 pa while in Khalifah City A prices rose 11 per cent from Dh50,000 to Dh55,500 pa.

Posted on August 15, 2015 in Uncategorized

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