Dubai’s Barsha Heights rents unlikely to go up for now

Tecom was renamed Barsha Heights last week, but the name change is not likely to have any impact on residential rents.

Property experts say hike in rents and prices are not determined by just a name change, but are driven by numerous other factors.

“Not simply due to the change in name – it requires more than this to increase values,” Craig Plumb, Head of Research at JLL Mena, told Emirates 24|7 when asked if rents and price would rise following the name change.
 
The demand and supply factors determine the rent in a locality along with the facilities available such as schools, hospitals, shopping centres, etc.

 
Although some residents fear hike in rents, brokers rule out any such possibility.
 
“The existing tenants need to fear nothing. Landlords have to follow the rent index slabs or they have the right to the challenge them. Moreover, landlords do know that their apartment will remain vacant if they ask for higher rents,” says Rehman S, a real estate broker.
 
“A number of families are becoming cost conscious and don’t hesitate to move out if the landlords ask for higher rents as they have ample affordable communities in close distance to Barsha Heights,” he adds.

As per the Real Estate Regulatory Agency rent index, studio apartments can be leased in Tecom (Barsha Heights) range from Dh50,000 to Dh55,000 per annum (pa), one bedroom units from Dh70,000 to Dh80,000 pa and two-beds from Dh85,000 to Dh110,000 pa.

Listings on property portals reveal rentals for studio units to range from Dh60,000 to Dh70,000 pa, one-beds from Dh75,000 to Dh85,000 pa and two-beds from Dh95,000 to Dh115,000 pa.

“I have been hunting for an apartment in Tecom [Barsha Heights] as it is close to my office. I spoke to a number of brokers, who admit rents will not increase just because of the name change,” says Raghu Kumar, a chartered accountant.
 
One of the major recent name changes to happen in Dubai was Dubai World Central being named Dubai South, which is home to Al Maktoum International Airport, the world’s largest airport, and Expo 2020.
 
“This project has certainly seen increased interest and stronger sales over past two years – but it is difficult to isolate how much of this has been due to the change in name. What usually happens is that developers take advantage of change in projects name to launch a major new advertising/marketing campaign.  This may well have greater impact on take up and prices than simply the change in name,” states Craig.