Rents in JVC, Creek Harbour soar alongside those at Palm, Marina and Downtown
Locations such as MBR City see sharp rent spikes as property awaits delivery
New residents in Dubai are starting to find that locations such as Jumeirah Village Circle and Dubai Creek Harbour are no longer as affordable on rents as they might have thought. At JVC, across 2022, rents are higher by 10 per cent, which is despite new homes being delivered right through this period.
This means a two-bedroom apartment at JVC — until now one of the most accessible residential districts — comes with a rental upwards of Dh70,000 annually and well over Dh80,000 for brand new homes.
The same is happening at Dubai Creek Harbour, with the high-rise cluster finally seeing some heavy movements on the rent side. According to data from DXBInteract.com. the mid-to-upscale apartments there have gone through a 23.3 per cent rent increase in 2022, which means a two-bedroom is now at Dh150,000 plus for a year on average.
“These locations — along with MBR City — still provide a much lower entry point rentwise for newcomers to Dubai,” said Firas Al Msaddi, CEO of fam Properties. “Because, elsewhere, they will be looking at a 29.2 per cent increase on the Palm Jumeirah, 27.8 per cent for Downtown Dubai, and 28 per cent in Dubai Marina.
“Another well-established location, CityWalk, has recorded
Another wellestablished location, CityWalk, has recorded a 19.4% increase.”
Firas Al Msaddi | CEO of fam Properties
a 19.4 per cent increase.” (As of now, two-beds at Dubai Marina show a wide rent band, from Dh150,000 and well over Dh200,000. Palm’s two-bedroom units hover around Dh200,000 and with the high prospect of further increases in Q1-2023. The Downtown Dubai too has listings around Dh250,000.)
With demand being such, there are fewer incentives from landlords. “There are still some rent-free periods being offered, plus, some giveaways on service charges, but that’s about it. The rental market in Dubai is red-hot.”
Offplan zooms
All through last year, developers in Dubai launched nearly 49,000 new units as offplan, which is the highest total since 2008, with the bulk of the releases being at JVC, Damac Hills, Business Bay and MBR City. There were also steady additions at Dubai Marina and Town Square, while Dubai Hills Estate is the other investor magnet.
Handovers too hit a high
According to DXBInteract. com, almost 35,000 units were completed in 2022 which is the highest ever. (Or in the process of handover.)
Offplan property values in 2022 have seen a 27.5 per cent increase across the board, says Al Msaddi. That means an apartment price average is Dh1.38 million, while that on a ready unit is Dh1.03 million after a 4 per cent spike.
“Dubai’s property market still offers ‘fair value’ for global investors compared to New York or London, which remain ‘over-valued’, and Toronto, which is rated as a ‘bubble-risk’ by the Swiss bank UBS,” said Al Msaddi. “Going by numbers there, Dubai is still affordable.”