Dubai: Rents in Dubai have eased significantly, according to the new calculator on Dubai's Real Estate Regulatory Authority (Rera) website.
While the updated rental index has not yet been issued, as promised in April, the rental calculator seems to reflect a rent relaxation.
The average rent for a studio in Dubai Marina is now Dh65,000 to Dh75,000. This figure was Dh80,000 to Dh90,000 in the first rent index, representing a difference of 17.6 per cent.
The calculator also shows that a one-bedroom apartment in the Greens now has an average rent of Dh90,000. Previously, it was Dh110,000 to Dh130,000, a change of Dh20,000 or 16.6 per cent.
A two-bedroom apartment in Satwa was originally Dh75,000 to Dh110,000 but now is Dh70,000 to Dh110,000, meaning that not much changed.
Rera uploaded their rent calculator on their website last week but were due to release their long-awaited revised rental index in April.
However, it is not clear whether the rent calculator is a replacement.
Officials at Rera were unavailable for comment when contacted by Gulf News yesterday so the revised index remains as elusive as ever.
Mohammad Khalifa Bin Hammad, director of real estate relationship regulation at Rera predicted last month there would be an average rental drop of between 10 and 15 per cent.
However, Marwan Bin Galita, Rera's chief executive, said that this forecasted drop is only for select communities.
"So far we are seeing 10 to 15 per cent correction in rent for one or two communities. But the full average will be shown in April," Bin Galita told Gulf News earlier.
Other industry experts said the 10 to 15 per cent drop was inaccurate and predicted a more realistic rental drop of around 30 per cent.
Rera had been waiting for all new tenancy contracts to be registered and collected through Rera's online Ejari website before being able to issue the new index.
There is much excitement surrounding the new index, with many Dubai tenants confident that it will reflect the recent tumble of rental rates across the emirate.
With rents falling, many people are looking to move into bigger apartments or even villas - a choice that they could only dream of before but which is now withing reach.
The initial rental index announced in December was widely criticised by the real estate industry and tenants as it was based on the high rents of mid-2008 and didn't reflect the impact of the financial crisis.
Have you used Rera's calculator? Is it accurate? Did it help you in getting a fair deal? Are you happy with the current rent prices?
Now its good news that flats are easily available in the range of Dh25,000/ Studio and Dh35,000 1 Bedroom
Posted: May 05, 2009, 14:29
Rates should be studio AED 25,000 1 BR AED 35,000 and 2 BR AED 45,000 only. This is not a dream and hopefully in a few months it will happen.
Saqeer S. V.
Posted: May 05, 2009, 12:46
Some real estate brokers are asking for 3 months advance payment before you can move in, studio for 45thousand is quite high...in a less income family that cannot afford to pay the 3 months advance has no choice but to suffer. The willingness to acquire accommodation is no longer that affordable for us. hope they can still reduce the advance payments.
Posted: May 05, 2009, 11:25
Studio 30,000 1BR 40,000 2BR 55,000
Posted: May 05, 2009, 10:36
Please follow Rental as Studio: AED.30,000 1 BR AED.45,000 2 BR AED.65,000 3 BR AED.85,000 the above rents are affordable for everyone.
Posted: May 05, 2009, 10:19
On an average the rents are beginning to decrease but yet there is no help to the middle income people .. landlords ask for one cheque sometimes 2 cheques at the start .. where can anyone get that money from ?? .. there is nothing to help the middle income leading to accomodation sharing!!
Posted: May 05, 2009, 10:09
ya, thats right, Rent in Karama, Satwa or sheikh Zayed road have reduced to 5% only, But other parts of Dubai rent has come down to 10 to 15%. It is good that families can afford a good accomodation at least.
Posted: May 05, 2009, 09:31
in some areas the calculator shows more than the current rent, still the rent system is not balanced to accomodate the average income families.
Posted: May 05, 2009, 09:25
Some of the bedspaces, house or room rents are still high and some are increasing just like in Bur Dubai to be specific. And some Landladies and Landlords trying to collect much higher rental. We are very much discouraging especially for us as the leasee, which our salary is not enough to pay the rent.
Almira Cruz Sison
Posted: May 05, 2009, 08:59
Please release the clear cut Rental Index which will be useful for the middle income families. As you are aware more families are suffering due to loss of job and global recession, at the same time some companies have reduced the salaries by 20%. How will they be able to pay rent? Please follow as follows Studio: AED.30,000 1 BR AED.50,000 2 BR AED.75,000 3 BR AED.100,000 the above rents are affordable for everyone. Consider Less Income people, Average income is Dh6000/- only.
Posted: May 05, 2009, 08:36