Sheikh Zayed Road apartment rents rose 6 percent
San Francisco, CA -- (SBWIRE) -- 10/05/2012 -- According to Asteco, rents for Palm Jumeirah villas climbed 7% while lease rates for Sheikh Zayed Road apartments rose 6% in the third quarter.
The real estate consultant firm added that quality residential developments continued to perform better with average increases of 2% for apartments and 3% for villas.
The commercial property market, on the other hand, remained the same, owing to a lack of demand, added Asteco.
On Sheikh Zayed Road, rents for a two-bedroom apartment increased 6% to Dh105,000 per year. Downtown Dubai saw a hike of 4% to Dh120,000.
In villa communities, Palm Jumeirah rents increased 7% with a three-bedroom unit renting for Dh325,000 per year, up from an average of Dh300,000 per year.
The Springs and the Arabian Ranches saw increases of 5% and 4% respectively, with three-bedroom villas leasing for Dh 125,000 per year in the Springs compared to Dh120,000 in the first half of 2012. Arabian Ranches properties of similar size and quality were leasing for Dh145,000 per year (Dh140,000).
“The increasing rental rates are due to the lack of a certain unit type, whether that is larger three-bedroom units in towers or smaller townhouses in villa communities,” said Elaine Jones, CEO, Asteco.
Newer villa communities such as Jumeirah Village saw rent go up as a result of improvements in landscaping, infrastructure and retail offerings.
Sales prices moved little following a steady increases at the beginning of the year.
Data from the Dubai Land Department indicated property transactions reached Dh2.2 billion in the month of August, slightly higher than the same period last year.
Although the Greens recorded a 3% increase, rising to Dh8,800 per square meter, apartment sales were relatively flat since the second quarter.
The most expensive apartment sales prices continue to be in the Dubai International Financial Centre and Palm Jumeirah, where the price is Dh14,000 per square metre.
Villas in Palm Jumeirah remain the most in demand with villas selling for Dh17,200 per square metre compared with Dh5,400 per square meter in Jumeirah Village.
There are 402,800 apartments, 58,300 villas and 9.1 million square meters of office space in the Dubai real estate market, with roughly 11,600 apartments, 6,100 villas and 770,000 square meters of office space expected to be delivered in the second half of the year.
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