Dubai: Rents in Dubai have eased significantly, according to the new calculator on Dubai’s Real Estate Regulatory Authority (Rera) website. While the updated rental index has not yet been issued, as promised in April, the rental calculator seems to reflect a rent relaxation.
The average rent for a studio in Dubai Marina is now Dh65,000 to Dh75,000. This figure was Dh80,000 to Dh90,000 in the first rent index, representing a difference of 17.6 per cent.
The calculator also shows that a one-bedroom apartment in the Greens now has an average rent of Dh90,000. Previously, it was Dh110,000 to Dh130,000, a change of Dh20,000 or 16.6 per cent.
A two-bedroom apartment in Satwa was originally Dh75,000 to Dh110,000 but now is Dh70,000 to Dh110,000, meaning that not much changed. Rera uploaded their rent calculator on their website last week but were due to release their long-awaited revised rental index in April.
However, it is not clear whether the rent calculator is a replacement. Officials at Rera were unavailable for comment when contacted by Gulf News yesterday so the revised index remains as elusive as ever.
Mohammad Khalifa Bin Hammad, director of real estate relationship regulation at Rera predicted last month there would be an average rental drop of between 10 and 15 per cent.
However, Marwan Bin Galita, Rera’s chief executive, said that this forecasted drop is only for select communities. “So far we are seeing 10 to 15 per cent correction in rent for one or two communities. But the full average will be shown in April,” Bin Galita told Gulf News earlier.
Other industry experts said the 10 to 15 per cent drop was inaccurate and predicted a more realistic rental drop of around 30 per cent.
Rera had been waiting for all new tenancy contracts to be registered and collected through Rera’s online Ejari website before being able to issue the new index.
There is much excitement surrounding the new index, with many Dubai tenants confident that it will reflect the recent tumble of rental rates across the emirate.
With rents falling, many people are looking to move into bigger apartments or even villas - a choice that they could only dream of before but which is now withing reach.
The initial rental index announced in December was widely criticised by the real estate industry and tenants as it was based on the high rents of mid-2008 and didn’t reflect the impact of the financial crisis.
Have you used Rera’s calculator? Is it accurate? Did it help you in getting a fair deal? Are you happy with the current rent prices?
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