Residential rents in Dubai for both villas and apartments have increased by around 10 per cent year-on-year in 2012, according to a new report by Jones Lang LaSalle (JLL).
Villa rents have increased five per cent compared to the levels of January 2009 and are almost back to their peak levels, the report said, quoting REIDIN Rent Indices.
Apartment prices are still 30 per cent lower relative to January 2009 levels, it added.
While rents haven’t seen a change since the beginning of 2012, they are expected to increase for developments in established locations, said JLL.
In terms of sales, the residential market looks to have bottomed out, with prices for both villas and apartments increasing since the start of 2012, said JLL, quoting the REIDIN Residential Sale Indices.
As of May 2012, villa sale indices rose by 21 per cent year-on-year and are now nine per cent higher than early 2008 levels.
Apartment sale indices have remained stable (up by one per cent year-on-year) but remain 18 per cent lower compared to January 2008.
In the second quarter of 2012, approximately 3,000 additional residential units were added to the market, bringing the total current residential stock to around 344,000 units. The majority of the completions were apartments.
“According to developers, a total of 24,000 additional units are currently scheduled to be delivered in the second half of 2012. The main locations that are expected to see new completions are Al Furjan, Jumeirah Village, Dubai Marina, Dubai Sports City and Dubai Silicon Oasis.
“In reality, some of the proposed projects might be delayed beyond their schedule date,” the report said.
“While investor sentiment towards Dubai real estate continues to improve, with increased sales of individual residential properties, there remain few major investment transactions due to the lack of quality stock being offered to the market at prices investors feel are attractive,” it added.