ArabianBusiness.com - Middle East Business News
Friday, 28 February 2020
Property agent publishes guide to Dubai rents
Tuesday, 07 April 2009


Dubai real estate broker Landmark Properties has published a rental price index to better reflect the downtown in the market.

The company said in a statement on Tuesday that "changing market dynamics" in the UAE’s real estate sector was allowing residents to negotiate cheaper rents with their landlords.

This comes weeks before Dubai real estate watchdog Real Estate Regulatory Authority's (Rera) highly-anticipated new rental index is due to be published later in April.

Story continues below
advertisement

Rera’s rental index published in January was criticised by industry experts for basing rental values at the top of the market in the middle of 2008.

Landmark Advisory, the agent’s research and analysis division, said it had published leasing price maps last month to "guide tenants on approximately what they should be paying for rent in certain areas".

“What we are seeing now in Dubai is a shift benefiting and protecting the rights of the tenant community. Tenants are having an easier time finding larger units for the same rate they currently pay, or choosing to move to more affluent areas. We’re also seeing many pay their same rent, but with an increased number of cheques,” said Charles Neil, CEO of Landmark Advisory.

Landmark have said a two bed apartment on the Palm Jumeirah should cost between AED140,000 and AED260,000 a year to rent, with the same sized property in the Marina placed at AED85,000 to AED150,000.

By contrast Rera’s index said that tenants in same properties on the Palm and in the Marina should be paying AED210,000 and AED240,000 and AED150,00 to AED180,000 respectively.


The rental value of residential apartments - Per Thousands / Annum (March 2009)
# Areas Studio One B/R Two B/R Three B/R Four B/R
1 Palm Jumeirah - 100-150 140-260 185-350 300-380
2 Dubai Marina 52-90 75-100 85-150 140-250 190-250
3 The Greens 55-75 80-90 120-140 170-190 200-230
4 The Views 70-85 80-125 150-160 175-210 -
5 The Springs - - - - -
6 The Meadows - - - - -
7 Emirates Hills - - - - -
8 The Lakes - - - - -
9 Jumeirah Lakes Towers 50-75 65-120 80-150 130-200 -
10 Jumeirah Beach Residence 75-90 100-120 130-160 170-200 210-280
11 Jumeirah Islands - - - - -
12 Al Barsha 55-65 70-95 100-135 130-170 -
13 Uptown Mirdiff - 95-120 130-140 - -
14 Mirdiff - - - - -
15 International City 38-50 50-65 75-80 - -
16 Dubai Silicon Oasis 50-65 65-100 90-130 115-120 -
17 Green Community 45-80 90-95 110-125 150-280 -
18 The Gardens - - - - -
19 Discovery Gardens 45-50 60-65 85-110 - -
20 Arabian Ranches - - - - -
             
The rental value of residential villas - Per Thousands / Annum (March 2009)
# Areas Two B/R Three B/R Four B/R Five B/R Six B/R
1 Palm Jumeirah - 250-350 350-450 400-500 500-600
2 Dubai Marina - - - - -
3 The Greens - - - - -
4 The Views - - - - -
5 The Springs 90-150 140-250 210-280 - -
6 The Meadows - 230-260 250-320 325-350 350-400
7 Emirates Hills - - - 200-380 400-500
8 The Lakes 220-230 230-250 285-300 370-390 400-425
9 Jumeirah Lakes Towers - - - - -
10 Jumeirah Beach Residence - - - - -
11 Jumeirah Islands - - 280-370 350-430 -
12 Al Barsha - 240-250 280-290 340-350 -
13 Uptown Mirdiff - - - - -
14 Mirdiff - 110-200 155-250 200-300 -
15 International City - - - - -
16 Dubai Silicon Oasis - - - - -
17 Green Community - 200-220 200-240 230-290 -
18 The Gardens - - - - -
19 Discovery Gardens - - - - -
20 Arabian Ranches 120-140 160-170 200-250 250-350 330-450


 
Comments (36)

Wrong price range for the marina
Posted by DB, Dubai, UAE on 14 April 2009 at 10:40 UAE time

I am not sure how this was calculated, but the price range of Marina seems wrong. You can't find a 2br apartment with great views in for example Iris Blue Tower or one of the 6 Emaar towers for 150.000/annum. Marina is a large area and some of it's sub areas are cheaper than others, but the index should display the full range.
Oh what a joke...it does humour me....
Posted by Frank, Dubai, Dubai on 14 April 2009 at 10:19 UAE time

Over the past three months, I have been subjected to Estate Agents telling me that I will not get a style 2M or 2E villa in the Springs for DHS160.000. They constantly gave me lip.....well too shay....I have now secured a 1E (the biggest villa) on the lake in Springs 8 for the AMAZING PRICE OF DHS160,000 from the landlord....who I might say did more than any Agent that I have met.....so hee, hee....Agents it is obviously evident that you are the ones that are pushing the market up!
not justified
Posted by Rohit, DUBAI on 14 April 2009 at 09:17 UAE time

I have read a couple of comments posted by people who have brought properties here and are justifying the high rents. This is absolutely ridiculous! These guys brought these properties just to flip over and make a killing. Unfortunately they are now stuck with these toxic properties. Further, these are just related to free hold property. What about properties in non-Free hold areas? How could you justify AED 150,000/- for 2BR in Bur Dubai which until 4 yrs ago cost less that AED 50,000/- This can only be classified as "pure greed" This cannot be justified as saying that it is part of 'Market Economy'. Proponents of such business models have caused the current crisis in this world.
The Rera index is just a sham and only pro- landlord.
Decision makers.....wake up now and bring in some regulation in this market.
Unbelievable
Posted by Ms G on 9 April 2009 at 12:30 UAE time

It’s hard to believe the resentment that comes through these comments; if it’s not the landlords, it’s the agents.

I’d just like to say to you all, if you don’t like the heat, GET OUT of the kitchen!!

Most of you writing in are well aware that most owners, and investors alike, are paying up to 9% interest, unheard of in Europe and the States. Therefore, rents will be high, so it’s all relevant. My sympathy goes out to those who bought during the peak, and need these high rents to cover their mortgage. So tenants, stop blaming the landlords, move to cheaper areas.

Home Owners with negative equity, blame the agents for misleading them into buying properties, that were way over-priced, and everybody knew. How can people be so stupid (pardon the adjective), when EVERYONE was being warned that this “Bubble” was bound to burst. How can you blame an agent for a decision made by YOU? It’s human nature to blame others for our mistakes, and that’s exactly what all this is all about.

I take my hat off to the people who purchased property back in 2001, when everyone else was too scared to take the risk. These landlords are still happy, even with the lower rents, and all I can say is “Fair play to them”.

Stop blaming others and move on, or MOVE OUT!!

Miss G
Lowest Prices Often = Bait & Switch
Posted by Research, Dubai, UAE on 9 April 2009 at 11:46 UAE time

Just because you see ads out there for less, doesn't mean those are real prices.

There's a lot of "Bait & Switch" happening in Dubai, right now. Landlords and unethical brokers are publishing crazy-low prices just to get calls, then they try to sell something more expensive, claiming to have already sold the cheap one.

I’ve had this experience myself. Occasionally there are some especially good deals, but most are scams.

Cherry-picking the lowest prices from classifieds does not paint an accurate picture of the market.
Greedy is greedy ..
Posted by Gerry Coffey, Dubai, UAE on 9 April 2009 at 11:21 UAE time

In reply to D, you need to take a wide view on property rentals!
I own a house in the UK and have had good and bad tenants.
I purchased the house to live in, not as part of a business venture. If my tenant moves out I can pay the rent. I will also maintain the property simply because it is mine and I need to protect my investment.
If I had taken on my house as a business venture I would have to accept market lows an highs as part of the course and take the necessary measures to keep the business viable.
I rent in Dubai (for the last 6 years) the landlord has a contractual obligation to maintain the property in most cases I have maintained the property myself, due to the fact that the landlords representative does not send competent people to do the work.
I would agree that there is greed here on both sides, but that’s partly a result of poor regulation in the housing market.
To Kathryn Roberts
Posted by The Consultant, Dubai, United Arab Emirates on 9 April 2009 at 10:36 UAE time

Basically you are committed to the contract until expiry. If you have a cancellation clause in the contract then obviously you can exercise it, but the standard wording of a Dubai rental contract does not contain this clause so unless it is something you specifically negotiated it is unlikely to be there.

Until only a few months ago, it wasn't really something anyone considered to be a problem, since most landlords would have been happy to let an existing tenant break the contract so they could let the property out at a much higher rate. Unless your landlord takes pity on you and gives you an ex-gratia rent reduction, the only way out of it now is to find a new tenant to take over the lease - unfortunately, unless you find someone really stupid that has no idea about the current market rate, you will end up having to make up the difference anyway, so won't be any better off.

I suppose the remaining question is - why do you feel the need to break a contract that you have committed to for a year? Presumably you can afford the rent, unless you have had a change of circumstances in the meantime? It's frustrating when the market (any market) moves against you, but that's the way it is sometimes. If it's any consolation, there are thousands of people (myself included) in the same situation.
Greedy is greedy ..
Posted by D, Dubai on 9 April 2009 at 09:11 UAE time

I see a paradigm shift from greedy landlord to greedy tenants here. I do not own a property in Dubai, but I do in my home country. I have a great relationship with my tenant back there ... when interest rates increase, or rents in general increase, we up his rent accordingly. When they come down, we do the same. He is a great guy, looks after my place and in turn I ensure that any problems or issues are resolved quickly. I have peace of mind and so does he. To me it seems that Dubai is all about one person trying to bleed the other for as much as they possibly can. Most of you tenants are just as greedy .... what happens when the rent you pay is not sufficient for your landlord to pay his mortgage? He has to sell and you'll have to move. What happens when he cannot afford to fix you leaky tap? You have to foot the bill etc etc.... is it just me who thinks this way? Please tell me not!
Dubai Rents
Posted by Gerry Coffey, Dubai, UAE on 9 April 2009 at 08:53 UAE time

To Kathryn Roberts
Posted by Mart on Thursday 9 April 2009 at 02:06 UAE time
"I have my second rent cheque to pay in June at a ludicrously high rate. How can I negotiate my landlord down when I have signed a legal contract commiting myself to a year? Can I realistically get a reduction in rent? "

Your rental contract should allow you to cancel giving three months notice, if you have three months left before your second rent cheque is due to be cashed, you should give notice to terminate your rental contract and be prepared to leave the property (for somwhere less expensive).
There is no reason to feel uncomfortable about doing this providing your rental contract allows for this action.
Your landlord may even consider renegotiation of your rent given the current economic conditions.
The sentiments expressed by other readers about contractual obligation wears a bit thin given the past couple of years history of the Realestate and rental market "poor land lord" I don't think so!!
Rent Guide
Posted by Sal, Dubai, UAE on 9 April 2009 at 06:09 UAE time

I don't understand the anger of Tom McHugh. While the guide is a total mis-guide to the users as market is 20% less than that of in the guide. All I know Landmark is trying to benefit by mis-guiding people while the market (I do experience as owner and lessee) is much below the published figures.
While it is commendable to do a guide to help the public it is equally condemnable to mislead them.
Tom, now you want to grow up together with others!
To Kathryn Roberts
Posted by Mart on 9 April 2009 at 02:06 UAE time

"I have my second rent cheque to pay in June at a ludicrously high rate. How can I negotiate my landlord down when I have signed a legal contract commiting myself to a year? Can I realistically get a reduction in rent? "

Lets phrase is another way - how would you feel if having signed a one year contract, your landlord attempted to raise the rate midway through the year because rents had risen?

If you sign a contract for a year, you have to pay rent at that rate for a year. The landlord can't expect to raise it during that year, and you can't expect him to decrease it. That is what a contract is all about.

The lesson to learn is that in the current environment of rapidly falling rents, you should either haggle hard to get a good deal, or only sign a 6 month lease (or less). If the landlord won't give you that there is plenty of choice - go to someone else.
GUIDE!
Posted by mathew kelly on 9 April 2009 at 00:43 UAE time

yes thats an excellent point by Tom! this is a GUIDE! Landmark will not be selling this guide, but they took the effort to compile the data and have it put out for all. They will benefit because the market will eventually benefit from the information they share.
Sad to see the continued bitter sentiment
Posted by Jo, Dubai, United Arab Emirates on 9 April 2009 at 00:29 UAE time

It shocks me to read constant bitter sentiment from readers - some of whom are continual prophets of doom and seem to want Dubai to fail or who want to settle some form of 'grudge' they have with the place.

I am recently made redundant from the property develpment firm who 'begged' me to come here. I purchased two properties here, both completed. In mid 2007 my wife and I purchased the first as a long term investment (villa on Palm Jumeirah) and the second (in December 2007) as a 'rent proofer' (The Lakes) - we now live in toxic asset number two. Combined, the properties are now in negative equity to about AED1.5m. I'm not wealthy nor stupid but at the time the investments were the right thing to do. Nor am I a 'flipper'. I purchased investments based on the key principles of real estate investing. Heaven help me as I lose a lot sleep about my decisions. However, despite my personal grief (which I am sure is felt by many others) it upsets me to be grouped into a bunch of 'greedy landlords'. The ones which readers want to 'get even with'. Get real readers. This is a market economy. I agree that rents were completely ridiculous but that is supply and demand. I ask you to ask yourselves that if you owned a property and rented it at below market rate because you are a humanitarian, would you do it? I bet most of you wouldn't. You see, most 'investors' or 'greedy landlords' as you prefer to refer to us as, are just like you - trying to get on. Sure there are people who are genuinely greedy but most are not.

I don't care if you chuck mud at me but if you do please keep it sensible.
What a bunch of nay-sayers
Posted by Tom McHugh, Dubai, United Arab Emirates on 8 April 2009 at 20:33 UAE time

I have to say that never have I read such baseless criticism and never have I come across a more confused lot of readers. Not sure where the word "index" came from... the article clearly states that Landmark has produced a rental rate guide for people.

Additionally, had any of you bothered to hear the interview on the radio last night, Landmark clearly stated it would be producing this guide on a monthly basis to HELP people get the most for their money. As someone who has lived here for 10 years now, I would have jumped at the chance to be offered some guidance on what I should be paying, instead of being taken for a ride by a greedy landlord.

Stop whining and be grateful that there are still companiews out there who clearly still care enough to create transparency in a market that has none!

Grow up, kids.
How should I negotiate?
Posted by Kathryn Roberts, Dubai on 8 April 2009 at 17:08 UAE time

It's all very well saying negotitate hard, but what if you took out a 12-month lease at the end of last year when rents were at their peak? I have my second rent cheque to pay in June at a ludicrously high rate. How can I negotiate my landlord down when I have signed a legal contract commiting myself to a year? Can I realistically get a reduction in rent? Won't the landlord just turn around and say I'm legally obliged to pay up and that's that? Any advice on this would be gratefully received!
RENT INDEX
Posted by RAMA, DIERA, UNITED ARAB EMIRATE on 8 April 2009 at 15:13 UAE time

I BELIEVE ALL THESE INDEXES ARE ALREADY IN THE BACK SEAT AND WOULD BE IRRELEVANT FOR A FAIR IDEA ABOUT THE PRESENT PROPERTY MARKET. I STRONGLY BELEIVE THAT THE DEMAND IS LESS AGAINST AMPLE AVAILIBILITY AND ANY INTERFERENCE TO STOP THE FALLING RENTS THROUGH ANY REGULATIONS WILL BE FUTILE AND OF NO USE
Rent index
Posted by shahid, Dubai on 8 April 2009 at 14:57 UAE time

These prices are ridiculous - do not pay these prices at all

i found 2 br in jbr for 100k, 1 br for 60k
2 beds in marina no more than 110k unless marina promenade
2 beds jbr for 140-155k
downtown dubai 125k for a 2 bed

feel free to treat landlords the way we have been treated for the last few years and let them suffer like we have!!!

Greedy landlords deserve this
One Offs!
Posted by mathew kelly, Dubai on 8 April 2009 at 14:46 UAE time

guys i understand the confusion! one company says this other says that....
however i am an engineer who just relocated from the UK, and was looking for an apartment. a lot of the ads in gulfnews (the cheapest) i mean, were "not available" or i suddenly missed out!
i did rent something for below market however i came to know that the landlord wanted the property rented out asap, so it is rare.
negotiate
Posted by paul, Dubai, UAE on 8 April 2009 at 13:11 UAE time

The key is to check advertised prices on Dubizzle, then negotiate hard. For example, rents might be 80k now, but do you want to be stuck paying 75k for a year when during the next year the 80k market rent might drop to 40k?

Negotiate down to the bottom and then insist on just a 6 month lease. In 6 months, you can have the fun all over again, and prevailing prices will be even lower.
Rental Index
Posted by Sam Sam, Dubai, UAE on 8 April 2009 at 11:52 UAE time

Offerings are much lower than what has been listed, offerings will further drop by 20-30% as people depart by summer, landlords will have to be realistic, logical and seek less returns to ensure continuity and fulfill financial obligation, as for the index, I recommend an adequate research to give a clearer picture because it is so far away from reality.
RENTAL Values
Posted by Ali Jafferu, Dubai, UAE on 8 April 2009 at 11:22 UAE time

I am sorry to say but these figures are high compare to the market. According to the market these days the lower limit has become the higher limit. So please check the market and redo this again.
rent "index" rubbish
Posted by David, Dubai on 8 April 2009 at 11:12 UAE time

This "index" is a load of rubbish. Anyone with a brain can go onto Dubizzle and see that the advertised rents (which all seem to be further negotiable!) are much lower than this "index" states.

4 bed villa's in Umm Suqeim / Jumeirah, for those who asked the question, can be had for sub 200K per annum, number of cheques negotiable. Same applies to Al Barsha.......

Ignore all these rent indexes and negotiate directly with landlords if you wish to retain your sanity!
Rent Index...
Posted by M, Dubai, UAE on 8 April 2009 at 11:12 UAE time

From the time the Rent Index was written to when it was published, rents probably dropped another 20%... I'm being offered a 4-bedroom in one of the towers behind Meridien Mina Seyahi at the Dubai Marina (beautiful finishes, overlooking the Palm) the guy is already down to 130k per year, 4 checks... I'm waiting until July... probably pick up the same apartment for 80k!!!
Landlords... The PARTY is over... wake up!!
Landmark Index
Posted by Peter, London, United Kingdom on 8 April 2009 at 11:06 UAE time

Why don't people THINK before they publish lists like this? The glaring ommission to this index is the Downtown Burj Dubai, which should be split into Old Town and Business Bay. As all of Old Town is now handed over and to a great extent rented why is it not included? Like above, just another set of figures a prospective tenant/agent can hang his argument on.
misleading rate table
Posted by rent victim, dubai, uae on 8 April 2009 at 10:39 UAE time

They have published these rates before RERA could do so , just to influence / mislead market perception on the drop in rents. Of course, they have a vested interest in doing so. But the public this time wont be so gullible, hopefully.
Unrealistic Figures
Posted by H on 8 April 2009 at 10:18 UAE time

Greens 3br offers being accepted at 120k

Springs 3br villas at 100k

Palm 3br flats 160k

agents advising prices will drop further next month get real!
the PARTIAL INDEX !!!!!!!
Posted by ANU, dubai, uae on 8 April 2009 at 09:51 UAE time

A rental index is supposed to be for the whole emirate and not only the categories they want to publish.

It is a clear case of someone trying to justify or perhaps influence future rent indexes. What more can we expect of HIGH PROFILE AGENTS who have only been waiting for the elusive tenant ?

It deserves only a reading and nothing more.
JUNK INDEX...!!!
Posted by Tasnim, Dubai, United Arab Emirates on 8 April 2009 at 09:15 UAE time

Prices are 10~20,000 cheaper per annum in the market. Check the newspapers and make a call in the advertised no. You will end up with the lowest rent availabe after a satisfactory negotiation. I am not surprised that real estate agents, owners and developers are comfortable turning a blind eye to the fact there are a lot of apartments vacant higher than the demand. It's the talk of the town that Dubai will soon look like a GHOST CITY. Nakheel is cancelling all contracts and I can imagine how the Palm (J/A & Deira) and other islands would look like.
Rent Index
Posted by chris, Dubai, UAE on 8 April 2009 at 08:39 UAE time

What about the rest of Dubai!!! Another junk index to be added to the others!!! I can find cheaer rents in Gulf news.
Please stop this rhetoric.
Posted by Ahmed on 8 April 2009 at 08:26 UAE time

The real estate value & consequently the rents are a direct derivative of the economic health & sustainability of a city or a region.

It is the economy that has to drive the real estate & not vice versa...

The current global crisis is a result of Real estate trying to drive the economy...

if one makes & sells houses to people who do not have the money to pay...who pays???

The tax payer & the investor...this is what is happening...

Does anyone remember the good old days of 18-20k studios, 25-40k 1BKH & 40-50k 2BHK???

Those days are not too far away...again.
PROPERTY INDEX
Posted by E. Allen, Dubai on 8 April 2009 at 08:02 UAE time

I agree with Rainigade, and would like to add that rents in Jumeirah, Um Suqeim etc. are not even mentioned! Is this because Landmark are not interested in these areas as they are not saleable properties?
What about Jumeirah / Um suqeim
Posted by James - Safa 2, Dubai, United Arab Emirates on 8 April 2009 at 06:04 UAE time

Good moves to provide visibility but what about other areas in Dubai like Jumeirah, Safa and UmSuqeim.... are the rents not moving there?
Can somebody be professionnal enough to publish a complete list indicating the source of their data....
Real Estate in Dubai has still some way before reaching maturity and professionnalism.........
rubbish
Posted by Sama, Dubai, UAE on 7 April 2009 at 21:02 UAE time

junk index is what it should be called. For example it says 3br ranches 160-170. There are 3brs in mirador and alvorado too... are they the same rate as smaller townhouses???
Confused again
Posted by micky on 7 April 2009 at 20:52 UAE time

The prices you refer to for a 2 bedroom in the first page of the article are listed as those for a 1 bedroom in the table.
No wonder there is always such a confusion over prices when press articles are not written correctly.
Must run, suddenly have a craving for doghnuts.
Reality!
Posted by GD, Dubai, UAE on 7 April 2009 at 17:55 UAE time

Hooray, at last, some one actually talking common sense and not pie in the sky living in a dreamland!
Vested Interests.....
Posted by Rainigade, Dubai, UAE on 7 April 2009 at 16:29 UAE time

So let me get this straight? A property group is now going to tell us what we should pay for a property?

No one else gets the "vested interest" angle in this? Does anyone else get how ridiculous this is? The information is just based on current market prices, with a slight tilt towards optimistically higher prices.

Let things play out and lower rental prices are sure to surface. Then a new list will have to be printed! Maybe another property group can get in on the action too? What say Better Homes?

What a sad state of affairs.... Will the real RERA please stand up?
All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason.Please keep your responses appropriate and on topic.
Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *
(Your email address will not be published)
City
Country
Subject *
Comment *


Please click post only once - your comment will not be published immediately.
Arabian Business Property
eg. Azure, Dubai Marina, Dubai OR Betterhomes OR Emaar

READER COMMENTS

Reader Comments (24 hrs)

No comments.

Read all user comments >

Architect Powerlist 2010

Meet The Boss