Average rents for villa properties in Dubai increased three per cent during the first quarter of the year, the first time they have risen since 2008/2009, according to a report by property consultants CBRE.
The highest increase in lease rates took place in two bedroom villas at five per cent, followed by five and six bedroom units at around three per cent, said the report.
“Areas offering an established community environment, combined with quality amenities and facilities continue to see the most impressive levels of growth and also remain in relatively short supply,” it added.
On average two bedroom villas in the Springs have increased their lease rates from between Dhs70,000 to 85,000 per unit, per annum in Q1 2011, to between Dhs85,000 and Dhs100,000 per unit, per annum in Q1 2012.
In terms of residential apartments, the report found that one bedroom units recorded rent rises of two per cent, while three bedroom units saw a one per cent rise in rates during the quarter.
Within the emirate’s freehold areas, the highest rent increases took place in the Greens at seven per cent, followed by Downtown Dubai where rates grew by six per cent, said CBRE.
“On a year on year basis, apartment lease rates in emerging locations have fallen by around seven per cent, with low high vacancy rates prevailing,” the report said.
“With new stock entering the market, lease rates are likely to remain broadly unchanged in 2012, with current rents below 2005 levels,” it added.