Palm Jumeirah costliest but Discovery Gardens shows maximum increase
Palm Jumeirah is the costliest community to rent a two-bedroom apartment in Dubai, but Discovery Gardens registered the maximum increase in the first quarter of 2014, according to a new report released by Land Sterling.
Average rents for two-bed units in Palm Jumeirah were at Dh170,000 per annum, rising 6 per cent in the first quarter compared to the final quarter of 2013, Land Sterling said in its Q1 report.
Discovery Gardens saw rents jumping 13 per cent to Dh90,000 per annum during the same period.
IMPZ and Business Bay saw rents for two-bed units rising by 12 per cent each.
Units were leased on average for Dh83,000 pa and Dh145,000 per annum, respectively.
Downtown Dubai saw a 3 per cent hike in the first quarter, compared to Q4 2013, and is at Dh165,000 per annum on average.
Dubai Silicon Oasis rose by 2 per cent with average rents being Dh87,000 pa.
In International City, on an average, a two-bed is being leased at Dh70,000 pa, with a quarter-on-quarter increase of 8 per cent.
Earlier this month, Asteco Property Management put the rental increase quarter-on-quarter for Palm Jumeirah, Discovery Gardens and Downtown Dubai at 3, 4 and 6 per cent, respectively.
With the population of Dubai expected to grow to 3.1 million in 2020 (at an assumed CAGR of 5 per cent), analysts estimate housing requirement to increase by 170,000 units in 2020, the report said.
“In the run-up to World Expo 2020, most of the city's supply estimates - residential, office, retail and hospitality - are being built based on the development requirements needed to host such an international event.
“Though developers may favour hospitality projects over residential ones during this interim period, housing supply needs to be maintained at the current historical average of 21,000 units per year to avoid any shortage, which may result in spikes in sales price and rent,” Land Sterling analysts asserted.
Emirates 24|7 reported earlier that Dubai was unlikely to witness oversupply of housing units with experts and developers ruling out any glut in residential market.
HSBC Global Research said this month that Dubai will see a supply of 90,000 new units by 2018, but the market will absorb – fairly easily — the new supply even if the population grows less than 5 per cent per year.
“We believe that we have not yet reached the peak of the cycle, and that the market can continue to absorb the expected supply additions over the next few years, even at a population growth rate below 5 per cent,” the bank said.
Average rents for two-bed units in Palm Jumeirah were at Dh170,000 per annum, rising 6 per cent in the first quarter compared to the final quarter of 2013, Land Sterling said in its Q1 report.
Discovery Gardens saw rents jumping 13 per cent to Dh90,000 per annum during the same period.
IMPZ and Business Bay saw rents for two-bed units rising by 12 per cent each.
Units were leased on average for Dh83,000 pa and Dh145,000 per annum, respectively.
Downtown Dubai saw a 3 per cent hike in the first quarter, compared to Q4 2013, and is at Dh165,000 per annum on average.
Dubai Silicon Oasis rose by 2 per cent with average rents being Dh87,000 pa.
In International City, on an average, a two-bed is being leased at Dh70,000 pa, with a quarter-on-quarter increase of 8 per cent.
Earlier this month, Asteco Property Management put the rental increase quarter-on-quarter for Palm Jumeirah, Discovery Gardens and Downtown Dubai at 3, 4 and 6 per cent, respectively.
With the population of Dubai expected to grow to 3.1 million in 2020 (at an assumed CAGR of 5 per cent), analysts estimate housing requirement to increase by 170,000 units in 2020, the report said.
“In the run-up to World Expo 2020, most of the city's supply estimates - residential, office, retail and hospitality - are being built based on the development requirements needed to host such an international event.
“Though developers may favour hospitality projects over residential ones during this interim period, housing supply needs to be maintained at the current historical average of 21,000 units per year to avoid any shortage, which may result in spikes in sales price and rent,” Land Sterling analysts asserted.
Emirates 24|7 reported earlier that Dubai was unlikely to witness oversupply of housing units with experts and developers ruling out any glut in residential market.
HSBC Global Research said this month that Dubai will see a supply of 90,000 new units by 2018, but the market will absorb – fairly easily — the new supply even if the population grows less than 5 per cent per year.
“We believe that we have not yet reached the peak of the cycle, and that the market can continue to absorb the expected supply additions over the next few years, even at a population growth rate below 5 per cent,” the bank said.
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