Dubai Rent update: 13% rise in IMPZ; 8% fall in Marina in mere 90 days

Apartment rents in International Media Production Zone (IMPZ) in Dubai rose between five and 13 per cent in third quarter 2015 compared with second quarter, reveals a new report.
In its latest report, Land Sterling, a chartered surveyors and property consultancy, said rents jumped by 13 per cent to Dh45,000 per annum (pa) for a studio apartment on a quarter-on-quarter (q-o-q) basis, while one-bed units increased by five per cent to Dh60,000 pa. Lease rates for two-bed units registered a 12 per cent jump q-o-q to 18 per cent, with rentals averaging Dh100,000 pa.
In the second quarter, rents in the above community for studio and one-bedroom were down by 11 and 8 per cent q-o-q, with rates averaging Dh40,000 pa and Dh57,000 pa, respectively. Two-bedroom were then renting for Dh85,000 pa.
# Dubai Marina
The pace of rental decline in Dubai Marina, the home to the four tallest residential towers in the world, slowed down to 2 per cent in the third quarter for studio units from 5 per cent in the second quarter. Average lease rates for studio stood at Dh81,000 pa compared with Dh85,000 pa.  One-bed units saw rents falling 8 per cent to Dh110,000 pa, while two-beds remained stable at Dh160,000 pa.
# Dubai Silicon Oasis
Similarly fall in rental rates slowed down in Dubai Silicon Oasis as well. Average annual rent for studio unit were at Dh48,000, down two per cent q-o-q. One- and two-bed units were being rented for Dh64,000 and Dh84,000 pa, down 2 and 6 per cent q-o-q, respectively.
# Discovery Gardens
Rents, however, rose for studio and one-bedroom apartments in Discovery Gardens. The former rose 4 per cent to Dh51,000 pa, while the latter increased by 4 per cent to Dh73,000 pa. Two-beds were fell by 5 per cent to Dh95,000 pa.
# Downtown Dubai
The consultancy reported a two per cent decline in rentals for two-beds in the upscale Downtown Dubai. Average annual rate stood at Dh175,000 pa. Studio and one-bed units saw 2 and 4 per cent increase to Dh92,000 pa and Dh135,000 pa, respectively.
# Jumeirah Lakes Towers
Leases for two-bed units in Jumeirah Lakes Towers declined by four per cent to Dh135,000 pa. Studio and one-bed dwellings registered three and one per cent increase with annual average rent being Dh67,000 and Dh94,000, respectively.
# Business Bay
In Business Bay, studio units rates rose three per cent to Dh80,000 pa. Both one- and two-bed apartments reported three per cent decline with average rents at Dh96,000 pa and Dh140,000 pa.
#Dubai Sports City
One and two-bedroom units saw rents rising by 3 and 5 per cent in the third quarter. Average leases rates at Dh75,000 pa and Dh115,000 pa, respectively. Studio rates remained stable at Dh52,000 pa.
#Jumeirah Beach Residence
Rentals for studio and one-bed apartments saw a reversal with rates rising 2 per cent to Dh87,000 pa and 5 per cent to Dh110,000 pa. Two-beds stabilised with no further drops compared with the second quarter’s three per cent decline. Average annual rents remains at Dh145,000 pa.
Rents on the rise
Overall, apartment rentals, Land Sterling said, rose per cent q-o-q in the third quarter with few areas witnessing rental softening in certain unit categories.
“Residential rental performance in 2015 has been exceptional amidst the prevailing negative market sentiment. Despite several project deliveries in 2015 till date, new supply has been absorbed by the steady influx of residents in the emirate, as non-oil sector economic activity maintained its momentum post second half 2015,” the consultancy said.
Inter-emirate relocation especially to Sharjah and Ajman were relatively much lower during this period of growth in Dubai.
“Second-tier communities such as Dubailand continued to satisfy price conscious tenants with affordable rental options and significant infrastructural improvements. Additionally, the increase in the transport costs offset most of the gains of lower rents in Sharjah/Ajman,” the report stated.

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