(MENAFN- Khaleej Times)
Tenants in some areas of Dubai are still paying less than the Real estate Regulatory Authority (Rera) Rental index rates, say industry executives.
In March, the Rera index was upgraded to bring rental rates in line with the market prices following over three years of rally in rentals. The Index is designed to reflect the average market rent using all the property locations and property types across Dubai.
“Places like Dubai South and Damac Hills 2 are recognised for being less expensive when compared to the centre and other well-known areas including Dubai Marina, Jumeirah, and Jumeirah Lake Towers. Tenants living in these outer districts frequently find their rents more manageable, especially because they exist further away from the city centre where demand is highest,” said Anmoll D Shroff, founder and chairman of Elton Group.
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Furthermore, there have been efforts to make the adjusted RERA Rental Index more transparent and equitable with a view towards prompting modifications in rental prices throughout different neighbourhoods.
“For those interested in staying current on specific rent prices, the Dubai Land Department through the 'Ejari' smart application has provided a Rental Increase Calculator that can help tenants and landlords determine fairness based on the latest index rates,” said Shroff.
Rupert Simmonds, director of leasing at Betterhomes, said there are a few areas and buildings in Dubai where rents can be found to be lower than the Rera Rental Index rate.
“While the Rera Rental Index provides a guideline, actual rental prices can vary depending on the building's age and condition, available amenities, location, and market demand. Notably, more affordable areas include older parts of Deira, Bur Dubai, and Karama, as well as more distant locations like International City, Al Warsan, Production City, and Jumeirah Village Circle, among others,” said Simmonds.
Anisha Sagar, director of property management at Allsopp and Allsopp, said in some cases, apartments may be rented for less than the current market average.
“For example, tenants who have lived in the same unit since before the pandemic might be paying lower rent because their rent increases have been gradual, based on their original lease terms. Additionally, older buildings in some areas may see lower rents than newer buildings in high-demand locations such as the main city centre. It is important to note that the Rera Rental Index is just a guide, and actual rents can vary depending on a number of factors, such as the location, size, and condition of the property,” said Sagar.
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