Where and how were the villa rental rates in Dubai changing in the 1st half of 2016
We have already monitored changes in rental rates for apartments in different neighbourhoods of Dubai in the first half of 2016. But tendencies on the villa rental market are interesting and worth reviewing as well. The rates for villa rental are higher, and sometimes their fluctuations in certain neighbourhoods are quite noticeable and prominent. And if rent in one neighbourhood becomes more expensive, in the other areas it might get more affordable. So how high were the villa rental rates in Dubai in the first half of 2016 and how did they change compared to 2015?
The changes in villa rental rates in Dubai throughout the first 6 months of 2016 proceeded differently in various areas of Dubai.
For example, 3 bedroom villas in Al Barsha got almost 7% cheaper, their rent went down from 213 000 AED in 2015 to 198 000 AED in 2016. Mansions with 4 bedrooms, on the contrary, got 2% more expensive, going up from 230 000 AED to 235 000 AED. Almost no change was recorded in rates for 5BR mansions – renting such accommodation cost 273 000 AED in 2015, and in the first half of 2016 it was about 275 000 AED.
No significant shift was observed in rental rates for villas in Arabian Ranches: 3BR houses cost 203 000 AED to rent, and 5BR – 303 000 AED, just the same as in 2015. Only 4BR were available for rent for 240 000 AED in 2016, while in 2015 renting them would have cost 243 000 AED.
A significant decrease of villa rental rates in Dubai throughout the first 6 months of 2016 compared to the rates of 2015.
A slight increase of villa rental rates was recorded in Jumeirah. A 3BR villa here is available for rent for 200 000 AED on the average (compared to 190 000 AED in 2015), 5BR – for 290 000 AED (as opposed to 285 000 AED in 2015). Only 4BR villas got cheaper – 245 000 AED in the first half of 2016 compared to 253 000 AED in 2015.
And renting a 3BR villa on the Palm itself became more expensive (average rate in 2016 – 350 000 AED, as opposed to 333 000 AED in 2015). There was also a decrease of rates for 4BR villa rent: 398 000 AED in 2016 versus 420 000 AED in 2015, 5BR went down from 675 000 AED in 2015 to 665 000 AED in 2016.
Also there were significant changes of villa rental rates in Dubai in the following neighbourhoods:
- Renting 5BR houses in Victory Heights Villas became 13 000 AED cheaper: from 318 000 AED in 2015 to 305 000 AED in 2016;
- Rates for 5BR villas rent in Jumeirah Village Villas went down from 208 000 AED to 193 000 AED;
- Five bedroom villas in The Lakes got cheaper: from 388 000 AED in 2015 to 363 000 AED in the first half of 2016;
- 5BR villas rental in Umm Suqeim decreased from 290 000 AED to 280 000 AED.
It is worth noting, that the most significant changes were observed among large five bedroom houses: they’re regarded as exclusive estate, and they’re more dependant on the demand and on the small number of transactions on the market. Rates for smaller villas, which are present on the market in abundance, remain rather stable. Still, there are no univocal tendencies on the villa rent market in Dubai, which serves as an indicator of market’s current stability.