Rents at Emaar Springs villas in Dubai rise 16% since July

James Smith, a British expat, has been renting a two-bed villa in the Springs community for the past three years. His landlord has informed him that his new rent will be increased by 15 per cent to Dh100,000 per year from Dh87,000.

Besides, he has been asked to pay the annual rent in two cheques. Last year, he paid the rent in four cheques.

“We are so used to living here in the Springs... all my friends stay in Emirates Living area. Hence my family doesn’t want to move out. The rent is still manageable and so I will be renewing my contract,” says Flanagan.

Property agents say average asking rents for two-bed and three-bed villas have risen between nine and 16 per cent in three months since July.

“A two-bed villa is now leasing for Dh105,000 pa from Dh90,000 pa, while three-bed villa are being offered for Dh150,000 compared to Dh140,000,” says Faisal Baig, Director, PropSquare Real Estate.

“There is growing demand for villas in established communities across Dubai in general and Emirates Living in particular. Rents have gone up as people are ready.”

CB Richard Ellis, in its third quarter report, said rental rates for villa properties have maintained their upward tack as demand remains high.

Quarter-on-quarter growth registered around three per cent, while the year-on-year increase is close to eight per cent. The highest step up in rents of 11 per cent year-on-year, was for two bedroom properties with larger units seeing lower growth levels.

Rental rates now appear to be fixed on an upward curve in the majority of sub-markets although for many districts and secondary locations, these increases remain modest at this stage, the consultancy informed.

'Emirates24/7' earlier reported that tenants, who seek to challenge the arbitrary increase in rents by their landlords, need to approach the dispute settlement committee in Dubai Municipality.

New Dubai rent spike sparks tenant, landlord legal clash across several communities

In response to a query on Twitter by an aggrieved Dubai tenant, as regards arbitrary rent hikes, the DLD said: “The landlord may increase the rent each year and this increase depends on decrees in rental percentage from the average rent in the same property.

“However, if there is no increase in the calculator, then you should refer to the dispute settlement committee in municipality.”

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