Dubai Rentals see increase in rents in the first quarter of 2014

Palm Jumeirah is the most costly community to let a 2-bedroom flat in Dubai, but the maximum boost was read by Discovery Gardens in the Q1 of 2014, in accordance with a fresh Dubai rentals report launched by Land Sterling.

Discovery Gardens found rents soaring 13 percent to Dh 90,000 per year and Dubai Business Bay rents for 2-bed components increasing by 12% each. Downtown Dubai reaches Dh 165,000 per year on common and saw a-3 percent Dubai rentals increase in the 1st quarter, compared to Q4 2013. On an average, in Global Town, a 2-bed rental went for quarter increase of 8%.

"In the runup to World Expo 2020, most of the town's supply approximations - residential, office, retailing and hospitality - are being constructed according to the development conditions needed to host this kind of international occasion.

"Though builders may favor hospitality developments over residential types throughout this interim period, home supply must be kept at the present historic average of 21,000 units per year to prevent any deficit, which might result in spikes in revenue cost and lease," Land Sterling analysts claimed.

Dubai was not likely to see over-supply of housing units with software engineers and specialists ruling out any glut in marketplace. HSBC Global Research said this month that Dubai will find an offer of 90,000 new developments by 2018.