Dubai unveils 2018 rental index

273

Staff Report

Dubai – The latest Dubai Rental Index 2018 goes live after the update by the Dubai Land Department (DLD).
The Department has updated its online Rental Index for next year, a process which carries extra importance this time given that residential rents had taken a hit across key locations for the first time since the Index came into being.
It is mentioned that a one-bedroom apartment at Dubai Marina is listed at between Dh70,000-Dh110,000. Rental in Business Bay is between Dh75,000-Dh105,000 on the portal, while for Jumeirah Lake Towers, the same is Dh65,000-Dh95,000, according to the Dubai Land Department portal.

The Rental Index is based on Decree No. 43 for 2013, which determines rental fee increases in Dubai for all types of property. It lists the rents for all of the freehold locations in Dubai where a resident base has started to develop, including for stand-alone high-rises in DIFC such as Liberty House, Sky Gardens and Index Tower.

The updated Index does stick relatively close to the changes that have been brought about in asking rents over the course of this year. But given the broadness of the rental bands provided for type of unit and location, there will be some tenants who will have issues with that.
For instance, the type of build quality differs widely within a sub-location. No one can say that all the towers at Dubai Marina or JLT offer the same living experience. Or views for that matter.
A Burj Khalifa one-bed can command between Dh160,000-Dh170,000 and if in Palm Jumeirah, that would be Dh100,000-Dh155,000. Someone interested in moving to the Downtown should set aside Dh80,000 to Dh105,000.
For the budget conscious, the new 2018 Index update has pegged a one-bedroom unit at International City at Dh35,000 to Dh40,000.
The Index also provides updated averages for the micro-locations in Deira and Bur Dubai. As cases in point, a Karama address would average Dh45,000 to Dh70000 for a one-bedroom, and Al Rigga in Deira at Dh50,000-Dh70,000.

The new update is for all residential, commercial and industrial properties in Dubai. The Dubai Land Department based these on multiple date points, including the average data of tenancy contracts registered in the “Ejari” system and the number of units registered in its databases.
For the first time, a land rent index has been added for land with annually renewable lease contracts.
“Updating the rental index once a year helps us to maintain transparency in rental transactions for the various properties available for leasing throughout the emirate,” said Mohammad Yahya, Deputy Executive Director of the Rental Affairs Sector at Dubai Land Department. “This limits conflict between the parties involved, especially as it is a reference that everyone can rely on.” – abdulbasit@theuaenews.com