RERA updates residential rent index for year 2013.

Recently RERA has updated the Dubai rent index for the year 2013. The aim of the index is to provide a guideline for tenants and landlords looking for suitable rental deals all over the city. RERA’s latest rent index update compiled a percentage rise for villas and apartment rents in established Dubai communities.

Rent Index 2013 for Dubai Villas

According to the newest RERA’s rent index report, residential communities showing increases in villa rental prices are Arabian Ranches, Jumeirah Islands and Palm Jumeirah.

Arabian Ranches displayed the largest jump of 22% in villa rental price. 3-bed villa rents are starting from AED130,000 to AED220,000 per annum (AED110,000 to AED180,000 pa in 2012). Four-bed units in the same community showed a 12.5% rise with rent rates ranges between AED170,000 and AED270,000 pa.

Jumeirah Islands exhibit a total percentage rise of 6.4% for villa units of 3 and 4-bed rooms. Four-villas can be rented for AED280,000 to AED330,000 pa, whereas three-bed units are available for AED240,000 to AED300,000 pa.

Palm Jumeirah Following the progressive trend of these two communities, Palm Jumeirah has become the highest-priced Dubai community with the highest rental rates for four-bed villa units that range between AED300,000 and AED400,000 per annum.

Rent Index 2013 for Dubai Apartments

According to RERA’s latest rent index update for the year 2013, residential communities showing huge hikes in the rental cost of apartments are The Greens, Dubai Marina, and Palm Jumeriah.

The Greens a project of renowned developer Emaar declared the highest percentage rise of 28% for 2 bedroom apartment, 22% for studios, and 15% for one bedroom apartment. As stated in the rental index, two bed apartments are now leased between the ranges of AED90,000 to AED110,000 per annum. Whereas, studios and one bed apartments in the same project can be rented on AED45,000 to AED55,000 pa and AED55,000 to AED75,000 pa respectively.

Dubai Marina manifested a percentage rental hike of 18% for two bed-apartments with yearly rent ranging between AED 70,000 pa to AED 130,000 pa as compared to (AED70,000-AED110,000 pa,2012).

Downtown Dubai sits in the third position with a total percentage rise of 16% for two bed-apartments. Rental cost will increase to AED110,000- AED140,000 per annum in contrast to previous year cost of leasing (AED95,000-AED120,000, pa, 2012).

Other Dubai communities that are reported showing a rise in apartment rent rates with slight differences include Palm Jumeriah, Jumeirah Beach Residences, Discovery Gardens, and Jumeirah Lake Towers.

Every year RERA shares a rental index to provide authentic information about rent rise in various Dubai communities. However, it doesn’t mean that property rent rise will essentially follow the same pattern. It all depends on the overall market condition and tenant/landlord interests.