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Dubai Rera Index 2013's latest: Palm Jumeirah costliest to rent villa
By Parag Deulgaonkar
Palm Jumeirah is now the costliest community to rent a three- or four-bed villa in Dubai, followed by Jumeirah Islands and Arabian Ranches, according to the latest Real Estate Regulatory Agency’s (Rera) rent index.
The first index update for 2013 puts rents for four-bed villas on the Palm between Dh300,000 and Dh400,000 per annum, an increase of over 11 per cent compared to 2012’s last index update.
Lease rates for three-bed villa rents remained stable between Dh250,000 and Dh310,000 pa.
Cost of leasing a three-bed villas in Arabian Ranches saw a 22 per cent jump with leases starting from Dh130,000 to Dh220,000 pa (Dh110,000 to Dh180,000 pa, 2012).
Four-bed units rose 12.5 per cent to range between Dh170,000 and Dh270,000 pa.
Four-bed villas in Jumeirah Islands are currently available for Dh280,000 to Dh330,000 pa, while three-bed units are being leased for Dh240,000 to Dh300,000 pa — both registering a jump of 6.4 per cent.
Rents for two-bed units in the Springs remained unchanged at Dh75000 to Dh100,000 pa. However, three- and four-bed units rose by over 6 per cent to Dh110,000-Dh170,000 pa and Dh150,000 to Dh200,000 pa.
One-bed villas in Jumeirah Village Triangle are currently being leased at between Dh70,000 and Dh90,000 pa. There was no comparison chart in the last year’s index for this area.
In January, Craig Plumb, Head of Research, MENA, Jones Lang LaSalle (JLL), told Emirates24|7 that residential rents in established locations Downtown Dubai, Dubai Marina and Palm Jumeirah will continue to rise in 2013.
“We have seen an increase in rents in established areas and we expect the same trend to continue. Rents are unlikely to increase in secondary locations,” he had said.
The villa rent index compiled by Reidin rose six per cent year-on-year and was two per cent higher than the peak level.
Asteco Property Management, a real estate consultancy, expects 5,400 villas to be delivered in 2013 with a total of 60,400 villas completed by second half of 2012.
Villa rents (Dh per thousand)
Community 1-bed 2-bed 3-bed 4-bed
Arabian Ranches - 100-130 130-220 170-270
Jumeirah Islands - - 240-300 280-330
Jumeirah Village (T) 70-90 100-140 - -
Meadows - - 170-240 200-260
Palm Jumeirah - - 250-310 300-400
Springs - 75-110 110-170 150-200
The Lakes - 135-160 150-240 210-290
Gardens - - 142-170 175-185
Green Community (DIP) - - 160-200 180-220
(Source: Rera rent calculator, First update for 2013)
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