One bedroom units available for as low as Dh21k in International City and 35k in Discovery Gardens
Rents in Dubai are touching new lows with one bedroom units being offered at Dh21,000 for a year in International City, while a similar unit at the Discovery Gardens is down to Dh35,000 from its peak of about Dh75,000, according to property advertisements posted earlier this week.
Experts say International City is a special case as it continues to face sewage flow problems in some parts of the development and the maintenance is also poor.
However, communities that are maintained well continue to witness robust lease rates. Rents in areas such as Dubai Marina, Downtown Dubai, The Meadows, Arabian Ranches and The Springs have not dropped significantly. But new areas that have peaked in deliveries recently have undergone a real fall in price and lease rates.
Studio flats at International City are now being offered for Dh16,000 to Dh18,000 a year, while studios at Discovery Gardens are now being offered at Dh24,000 – less than half of their peak asking rates in 2008.
Experts say that areas that will see further price falls and rental declines will be with respect to the new properties being handed over, where owners may be struggling to meet final payments – and the surrounding areas still look like building sites.