# Current rental rates in Dubai/UAE?



## gforce23 (Aug 3, 2008)

Hi there, 

I know a lot of expats have made their way to the UAE over the past couple of weeks and for the benefit of incoming expats, I would greatly appreciate it if someone could post a current rough ball park figure for 1 and 2 bedroom apartments in and around the city (JBR and Academic City, for example).

I do know that rental rates in Dubai are more unpredictable than a bull run at the NYSE but keeping abreast of the latest down/upswings shall help a lot of new expats with drawing up a cost benefit analysis and foreseeing budgetary deficits.

Thanks!

p.s.: For anyone who might be interested, here's a ready reckoner for the latest rates in AD:
Out of city 
New 2BR apartment 170-190 
Older 2BR apartment 160-165 

In city 
Older 2BR apartment 180-190 
New 2BR apartment 200-210


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## Sparkysair (Jul 16, 2008)

Hi gforce, the latest market review (Q4 2008) has just been released by Asteco. If you go to Asteco property Management, Dubai Real Estate,Freehold Propert in Dubai,Abudhabi,Sharjah,Alain,Jordan,Bahrain,Qatar :: asteco.com, select Property Services at the top, then Market Research and Quarterly Reports. I've found them pretty accurate so far. HTH.


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## Shedsy_Moon (Oct 29, 2008)

Hi gforce,

I'm in Dubai currently to look at properties for my impending move to dubai in March and have a numbr of viewings with agencies over the next two days. Once I have some details I'll be happy to share my findings with all.

Cheers

Shedsy_Moon


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## mayotom (Nov 8, 2008)

gforce23 said:


> Hi there,
> 
> I know a lot of expats have made their way to the UAE over the past couple of weeks and for the benefit of incoming expats, I would greatly appreciate it if someone could post a current rough ball park figure for 1 and 2 bedroom apartments in and around the city (JBR and Academic City, for example).


Gforce, I'm not sure of Prices at Academic city but try international City, you should get one beds for 70,000 to 80,000 

As for JBR, well they are still asking 160k for one bed and 220 for two bed, but JBR is still only 35% to 40% occupied so there is plenty of room for negotiation, Rents in Dubai are definately falling. I looked at Discovery gardens in October where they were asking for 110k for a one bed in 1-2 Cheques now its easy to get it for 80k in up to 12 cheques. 

back to JBR, I would expect to be able to get one beds in JBR for 100,000 if you can hold out for another 6months , try to get short term lets of 2-3 months at a time till the rents stabilise


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## Maz25 (Jul 6, 2008)

I'm not so sure that rent in JBR will drop that low. My flatmate works in real estate (and we live in JBR) and her view was that December was absolutely dreadful and whilst rent in certain areas are coming down and landlords are a lot more open to negotiations these days, the market has already started to pick up. It is not yet at the level it was 6 months ago but give it another 6-12 months, it will once again become a landlord's market, though most articles I have come across are saying that there is no scope for rent increase this year!


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## mayotom (Nov 8, 2008)

Maz25 said:


> I'm not so sure that rent in JBR will drop that low. My flatmate works in real estate (and we live in JBR) and her view was that December was absolutely dreadful and whilst rent in certain areas are coming down and landlords are a lot more open to negotiations these days, the market has already started to pick up. It is not yet at the level it was 6 months ago but give it another 6-12 months, it will once again become a landlord's market, though most articles I have come across are saying that there is no scope for rent increase this year!


I'd like to see a real estate agent or developer who can confirm that things are picking up, I meet 2-3 agents daily and have yet to find one to agree with your friend. I wish this was not the case, but we have to face the fact that Dubai is in for hard times mainly caused by poor regulation and in the most part pure GREED of everybody from the first time investor right up to the top policy makers.

As For JBR, next time you have a chance take a walk around and take note of the number of lights that are one at 8pm 9pm 10pm the times that people are at home. you will probably find that its 30-40% then take a look on Dubizzle and note the JBR apartments that are listed today and again in 3 days and again in a week. you will notice that they just can't rent them at those rates... so the market will finally push the prices down. 
After all Wages are pretty much frozen or dropping in most companies in Dubai so people can't afford the rents that are been sought in JBR. then at the same time tens of thousands of people are leaving the region. while tens of thousands of properties are been completed,

Simple math will show that there will be a big over supply of apartments for rent this year. so the only option for the landlords is to drop the prices to more realistic prices. 

This combined with the structural defects, lack of facilities and parking and the increasing traffic problems(as more marina projects complete at much lower rents) along with increasing(doubling) maintenance charges, JBR will become less and less desirable 

THEN COMMON SENCE WILL START TO PREVAIL IN DUBAI..... well a bit of a start anyway


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## marrstead (Jan 6, 2009)

Sorry to jump on this thread, dont mean to hijack it, but can anyone let me know what the percentage difference is roughly between properties to rent or buy in Dubai compared to RAK? I am due to move to RAK and trying to get decent info so I can start to plan financially is quite hard. On a different tack where are the best places to eat, drink and see, as I'm coming over soon for a week to get a taster for the RAK area so would be nice to know so I dont look a total tourist. Cheers


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## gforce23 (Aug 3, 2008)

Thanks for the link, Sparky. Looking forward to hearing about your experiences, Shedsy. Thanks for the updated prices, mayotom. No thanks to Maz for going against the tide!


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## carlos carlos (Dec 29, 2008)

As For JBR, next time you have a chance take a walk around and take note of the number of lights that are one at 8pm 9pm 10pm the times that people are at home. you will probably find that its 30-40% then take a look on Dubizzle and note the JBR apartments that are listed today and again in 3 days and again in a week. you will notice that they just can't rent them at those rates... so the market will finally push the prices down. 

Simple math will show that there will be a big over supply of apartments for rent this year. so the only option for the landlords is to drop the prices to more realistic prices. 

only 30-40% of units are occupied because most investors/owners do not want to lease out their units or simply they do not need the rental income to pay of mortgages, most owners are long term investors once they bought and paid their units off plan you will not hear from them anymore.....
JBR/Dubai Marina has been very high demand specially by small family / bachelor because of convenient location etc.... 
I do not see rental in JBR/Dubai Marina will drop too much like other areas in Dubai in next 3-6 months. Although I wish it will!


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## Maz25 (Jul 6, 2008)

Yes, I noticed as soon as I moved in that JBR is predominantly empty. It is even more apparent now as a lot of people have had to go home because of the credit crunch! Even during Ramadhan, The Walk was more lively than it is at the mo!!!

I do agree with Carlos though that rent in JBR will never go down to the levels seen in other places. Another block in JBR got released on the rental markets about 2 weeks ago and supposedly it is owned by the sheikh (don't think he is pressed for cash somehow, probably just took pity on the rest of us who are a bit hard-up at the mo!). And rent is slightly lower - only just!

Forget about over supply this year - the mass exodus has already started and if the UAE is not careful, this place will become a ghost town, with loads of empty apartments and no expats to rent them out to. Doesn't help that there always seem to be a new block of flats being built!

But, I'm with you on that one - I do hope that common sense prevail though this is highly unlikely as the market is artificially inflated and a lot of money and effort go into keeping it that way. I just wouldn't hold my breath - there is a risk I would stop breathing before we see any significant drop in prices! I'm one of those pessimists that believe that rent will simply plateau!


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## nm62 (Dec 11, 2008)

It is for Dubai Only
FatWire Corporation Content Server


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## Elphaba (Jan 24, 2008)

These are the official figures for _average_ rents for apartments in Dubai in 2008

Studio - Dhs 80,000
One bed - Dhs123,000
Two Bed - Dhs 165,000
Three bed - Dhs 243,000


The new RERA guide was pubished last week but it unclear regarding guidelines for residential rents, but it appears that people paying below market rents (usually because they have been somewhere for many years and have had rent caps) may see substantial increases.

My sources tell me that rents are reducing and many landlords are accepting multiple cheques.

-


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## Sparkysair (Jul 16, 2008)

I'm curious as to how forum members' experiences in the rental markets compare to RERA's average figures for 2008. I know I am paying more than 'average' for my one bed, anyone care to share?


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## Elphaba (Jan 24, 2008)

Sparkysair said:


> I'm curious as to how forum members' experiences in the rental markets compare to RERA's average figures for 2008. I know I am paying more than 'average' for my one bed, anyone care to share?



Some people will be paying more, some of us less - that's what makes it an average. The price you pay will depend on the area and facilities.

-


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## bex (Oct 13, 2008)

just to add, we have just signed for an immaculate 2 bed villa in springs 14, 20m from the pool, and 100m from the shops. was 200k got it for 180k


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## nm62 (Dec 11, 2008)

Long-term tenants still facing rent hike in 2009 - Real Estate - ArabianBusiness.com


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## mayotom (Nov 8, 2008)

nm62 said:


> Long-term tenants still facing rent hike in 2009 - Real Estate - ArabianBusiness.com


This scale quotes Discovery gardens at at 95-105 for one beds there are currently plenty available for 80 and less

Also it quotes Al barsha as 80k - 120k thats a 50% difference between the lower and higher end of the scale 

This is not very useful, RERA need to up date this already. 

Its simple Rents in Dubai have got to Drop, SIGNIFICANTLY this is a falsely inflated market which just can't be maintained with the current volume of economic activity in Dubai. Supply and demand will always bring the prices of any product to a correct level, this is what is starting to happen in Dubai as investors start to wake up from the dream of the past 5 years


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## gforce23 (Aug 3, 2008)

Apologies if this had been posted earlier:

From Gulf News 

Dubai freezes rents for contracts signed in 2008 

Dubai: Rents for Dubai tenants whose contracts were signed in 2008 cannot be raised this year so long as the rent in 2008 is equal to or up to 25 per cent lower than the average market rate, according to a decree issued on Monday. 

According to decree No 1 for 2009 issued by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, rents for both residential and non-residential properties in Dubai whose contracts were signed in 2008 cannot be increased in 2009 so long as the rent in 2008 is equal to or up to 25 per cent lower than the average market rate. 

The new decree includes a mechanism to deal with low rents, where rents for the current year can be raised as long as the rent for 2008 was up to 25 per cent less than the average market rate. 

Mohammad Ebrahim Al Shaibani, Director of the Dubai Ruler's Court, said Shaikh Mohammad's decree aims to curb the soaring rents in Dubai and bring them to reasonable levels.

An interactive RERA map is available out HERE.


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