As followed by the Jumeirah Lakes Towers (JLT) and the Dubai Marine Master Developments which is an analysis of Dubai’s official rent index by Unitas Consultancy, the average rents in Jumeirah Village Circle or JVC have increased to the maximum in the last few years. Since October 2010 to November 2014, the JVC has seen the rents increase by 68%.
The prices of studio apartments are up by 60% where three-bedroom apartments have rose by 74 percent, two-bed and one-bed units are increasing by 72 percentage.
In Jumeirah Lakes Towers, the average rents have grown up by 58%. 3 Bed units have risen by 69 percent while the studio apartments with two beds have increased by 63 percent, 38 percent and 59 percent respectively. By registering the average rise of fifty percent, The Dubai Marina is third on the list of 10 communities.
Prices for the two-beds are up by 63% as followed by the four beds at 57 percent. Studio, one- and three-beds rose by 32 per cent, 45% and 54 percent, correspondingly. Due to these rapidly increasing prices in rents, are leading buyers to mortgage more willingly than the rent as it designates the scarceness in supply.
Unitas in its report titled as ‘Dubai: Amidst a slowdown, underlying strength’, said that: “The trend seen of higher mortgage activity in the two-bedroom including the space in apartments and 4 bedroom with space in Villas”.
Examination of Mortgage
The latest rises in rent have reinforced the trend of renters becoming owner-occupier, says report. The analysis of the unit-wise mortgage has shown that the last years, in the apartment segment, two bedrooms have had the maximum number of mortgages where the villa category had four bedroom plus.
The straight comparison between the mortgages of four-bedroom units, apartments and villas clearly shows that the end-user give more preferences to the villas.
In the last 4 years, the four-bedroom mortgages plus villas have almost doubled where the four-bed apartments have remained flat, further added by the report.
A time series study of operations for both villas and apartments have showed patent rising trends for mortgages, specifying the stronger end-user base for Dubai.
As a percentage of total volumes, Villa mortgages have risen by 10% year on year, where the apartments have risen 6 percent, displaying a stable rise.
According to the transactional analysis conducted over the last year September 2013 to September 2014, the volume has demurred by about 50 percent on year on year basis that reiterates the market reports that is provisional froth has departed.