Rental rates rise sharply in Dubai

10/12/2012 - Dubai Property News Posted by Neil King
Rental rates rise sharply in Dubai
Landlords who own properties in the most exclusive parts of Dubai have increased their rental rates considerably in the past year.According to new figures released by CB Richard Ellis (CBRE), residential rents have gone up by 17 per cent in certain areas.This is a clear sign the real estate market is back on its feet following a sharp downturn during the global financial crisis."Dubai is seeing higher rental growth this year due to a sustained period of population growth, positive economic performance, increased occupier demand and limited availability of quality units in the most desirable locations," commented head of UAE research at CBRE Matthew Green.He added that property investors are particularly keen to secure new assets in established locations.Indeed, landlords who own buildings in places like the Dubai Marina, Palm Jumeirah and The Greens have been able to hike their rents up by as much as 24 per cent in the past 12 months."With supply levels becoming increasingly tight in popular community areas, further product launches are anticipated during 2013," Mr Green continued.A report published by the organisation highlighted just how many "mega-projects" are in the pipeline and this is likely to attract even more foreign investors to the UAE.Another study recently conducted by Jones Lang LaSalle indicated that Dubai is still the most preferable investment destination in the Middle East.Emirates 24/7 reported that non-UAE nationals are attracted to Dubai because it is seen as a safe haven, especially when compared to some of the more volatile countries in the Arab world.A spokesperson for the firm insisted that the "transparency, legal structure and international appeal of Dubai" make it a very good place to buy real estate.The government has introduced a multitude of new laws to ensure people who make a property investment in Dubai are protected as much as possible.One new law, which will offer 100 per cent refunds to investors if a developer defaults on a project, could soon come into effect.