Today Landmark Advisory released its Dubai Rental Guide for May, which outlines current market rent spreads. The guide shows ranges between the highest and lowest rents available in specific areas and developments in Dubai. “In some areas, prices can range rather significantly,” said Jesse Downs, Director of Research & Advisory Services. “This is due to an observed willingness by many end-users to pay significantly higher rents for preferred locations with higher-quality properties with good reputations for maintenance, amenities, and the surrounding retail mix,” she added.
The ranges are meant to indicate high-low rent spreads, not exact figures. Ms. Downs explained that “readers should use the Rental Guide to define minimum and maximum rent expectations according to the level of unit and location quality in a given area.”
City-wide average rents fell, but a few areas have begun to stabilise. For example, after declining precipitously in the last quarter of 2008 and the first quarter of 2009, rents in the Springs declined in April. In fact, the lowest available rent for a 2-bedroom Springs villa increased by AED 5,000 to AED 95,000 per year. “In this area, tenants flocked to take advantage of opportunities created by steep rent declines,” said Ms. Downs. In addition, rents for 2-bedroom apartments in Dubai Marina have also begun to stabilise.
Despite relative stability in certain areas, many rents continued to fall, creating opportunities for tenants eager to upgrade to larger, higher-quality, and/or better-located units. For example, villas and apartments on the Palm Jumeirah and in Arabian Ranches are now renting for substantially less than two months ago.
“Dubai tenants will see even more opportunities to upgrade their accommodation as rents will continue to fall,” said Ms. Downs. However, high-demand areas will experience a faster rent rebound as deal-seekers rush in. Ms. Downs recommends that tenants looking to upgrade “should carefully consider their timing in order to balance likely rent discounts with the high probability of competition over available units.”
About Landmark Advisory:
Landmark Advisory was originally established in September 2006 under the name of Landmark Consulting Associates, with a mission to provide superior generalist advisory services in the areas of development and planning. In April 2008, Landmark Advisory was established and has brought with it the experience and network of Landmark Consulting Associate’s years of existence.