The cheapest place to rent a one-bedroom apartment in Dubai is in the Arjaan master development, according to the Real Estate Regulatory Agency’s (Rera) rental index’s second update.
One-bed units in the development are available from Dh35,000 to Dh45,000 per annum (pa) followed by International City, Dubai Investment Park and Remraam where rents range from Dh40,000 to Dh50,000 pa.
Lease rates in SkyCourts, Dubailand, were between Dh45,000 and Dh55,000 pa. In International Media Production Zone (IMPZ), rentals ranged from Dh50,000 to Dh 55,000 pa.
In Dubai Silicon Oasis, rates ranged from Dh50,000 to Dh70,000 pa, while in Discovery Gardens rental prices were Dh60,000 to Dh75,000 pa.
Earlier this month, MoveSouq.com and FlatReviews.com said in their first quarter 2015 report that an increasing number of tenants were moving to Dubailand, driven primarily by affordable rentals.
It put rents for studio units at Dh35,000 to Dh45000 pa; one-beds Dh45,000 to Dh55,000 pa and two-beds Dh60,000 to Dh75000 pa.
The costliest one-bed units, as per the second index update, are in Burj Khalifa, the tallest tower in the world, with rents ranging from Dh160,000 to Dh180,000 pa, followed Palm Jumeirah which ranged between Dh130,000 and Dh160,000 pa.
In Dubai Marina, one can rent a one-bedroom unit from Dh90,000 to Dh120,000 pa, while in Downtown Dubai it is between Dh100,000 and Dh120,000 pa.
Emirates 24|7 reported last week rents have remained stable in the second update of index.
However, a comparison done by this website of the first update of 2015 with the last update of 2014 revealed a rental increase of six to 25 per cent across some of the master communities.
The index is updated every four months by Rera, which is the regulatory arm of the Dubai Land Department.
In December 2013, the Dubai government issued Decree No. 43 of 2013 concerning the percentages of maximum property rent increase that are allowed upon the renewal of tenancy contracts.
The rent increase slabs are as follows:
# No rent increase if the rent of the property unit is less than 10 per cent of the average rent of a similar property in the same residential area.
# If the rent value is between 11 and 20 per cent less than the average rent of a similar property, the maximum rent increase shall be equal to 5 per cent of the rent value.
# If the rental value of a unit is between 21 and 30 per cent less than the average rent of a similar unit, the maximum rent increase shall be equal to 10 per cent of the rental value.
# If the rental value of a property is between 31 and 40 per cent less than the average rent of a similar property, the maximum increase shall be equal to 15 per cent of the rental value.
# If the rental value of a property unit is less than 40 per cent or more of the average rent of a similar unit, the maximum increase applicable is 20 per cent.
The average similar rental value of the property will be determined by the Real Estate Regulatory Agency’s rent index, the decree states.