|
The price of renting apartments on the Palm Jumeirah has soared by more than a third in the last six months, yet more evidence of Dubai’s rampant property market.
Research by Arabian Business has revealed that rental costs for two and three-bed apartments on the Palm Jumeirah, one of three artificial palm-shaped islands in the emirate, offering a mix of upmarket hotels and residential properties, have risen by 37.5 percent and 33 percent.
Since March, the cost of renting a villa has increased by 20 percent.
A spokesman for Dubai-based Better Homes, one of the biggest estate agents in the emirate, said on Monday: “The high demand and low levels of available rental properties on the Palm Jumeirah has forced prices up quite significantly over the last six months with two bedroom apartments increasing from 160,000 ($43,580) to 220,000 dirhams ($59,898) per annum and three bedrooms rising from 210,000 ($57,176) to 280,000 ($76,234) dirhams over the same timeframe.
"Similarly, villas have risen from 450,000 ($122,519) to 545,000 ($148,384) dirhams.”
Arabian Business spoke to two agents posing as a prospective customer. One said rents for two-bed apartments had doubled since the start of the year, rising from 150,000 dirhams ($40,835) to 300,000 ($81,679) dirhams.
The same agent said rents at the most popular apartments were rising by 5,000 dirhams ($1,360) every two weeks.
Another company said that annual rents for one-bed apartments have now reached 170,000 ($46,285) dirhams on Palm Jumeirah, whereas six months ago people could expect to pay 140,000 ($38,117) dirhams.
The property market in Dubai has grown rapidly in the last few years sparking massive house price inflation and rental growth but experts now say the market could overheat.
In August, Wall Street bank Morgan Stanley predicted that house prices in Dubai will fall 10 percent by 2010. source arabian business
|
Property News 
