Apartment and villa rents in Dubai set to slow down

Dubai: Rental rates for villas and apartments in Dubai are set to slow down further, according to a latest report by rental agency Asteco.

Villa rental rates had a slower increase growth of 11 per cent over the last three months, while apartment rental rates saw an average growth of just 4 per cent.

Despite a rent cap, landlords have been violating government directives and have a way in getting away with it.

International City and Jumeirah Lakes Towers had the highest recorded rental increases for apartments of 13 per cent and 11 per cent, respectively.

The highest rental rates for villas was 25 per cent, as seen in Downtown Burj Dubai due to limited supply of villas in the development, said Asteco in their third quarter residential report.

There was an overall increase of 24 per cent in villa prices since last quarter whereas, apartment prices appreciated slightly slower, at 20 per cent.

Andrew Chambers, managing director of Asteco, said despite the financial crunch affecting the rest of the world, demand for villas and apartments in Dubai, remains "unabated".

Because of these high rents I am unable to bring my family here.
Narasimha Raju
Dubai,UAE
Posted: November 04, 2008, 09:03

I am worried about how much the rent will increase every time it is renewed. Last year my rent went up by 40 per cent! If this keeps continuing, more families will start leaving, not because they do not like it, but because they cannot afford it.
Ansari
Sharjah,UAE
Posted: November 04, 2008, 02:10

Half of the new buildings in Dubai are empty because of the high rent. Something needs to be done before we lose the people that make up Dubai.
Husam Alzeer
Dubai,UAE
Posted: November 04, 2008, 00:55

Many landlords are still demanding more than a seven per cent increase in rent. It is unfortunate that families who have lived here for many years are being forced to leave because of this.
Mufazzal
Dubai,UAE
Posted: November 03, 2008, 17:30

I do not think that the numbers mentioned above are correct. Four months ago I rented a studio in International City for Dh40,000 and now it has gone up to Dh62,000. That is an increase of more than 50 per cent!
Yaz
Dubai,UAE
Posted: November 03, 2008, 17:04

I do not expect any rapid decrease in rent prices. However, I think the increase may slow down, since it is already at its peak. We will see a change when families sharing apartments start moving into their own flats and people living in other emirates but working in Dubai will move back. If this happens then there will be equilibrium.
Pradeep
Dubai,UAE
Posted: November 03, 2008, 16:59

I feel that this rent decreasing trend will become more common in the coming months and will also spread in other emirates.
Naeem
Dubai,UAE
Posted: November 03, 2008, 11:17

Since demand is more and supply is less, there is a large gap between the two and villas or apartments on rent are not available.Families are going back due to heavy burdens of rent and school fees increased tremendously.
Gracy
Dubai,UAE
Posted: November 03, 2008, 10:39