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Question for you all:

What is going to happen to the rent prices in the marina area once JBR is completed fully. There are many other towers being built but JBR is obviously the big chunk of new properties.

A colleague of mine has just rented a 1 bed apartment next to Mall of the Emirates for 85K AED. A few weeks ago this was 95K. The property developers who rent the apartments (they have about 160 in Dubai) said that prices will drop when JBR completes as the market will be saturated with available apartments for rent. So they dropped it early so it will be in line.

What are your thoughts on this? Will the rent prices drop in the Marina area?

cu

I think I may have misunderstood your post - it doesn't make sense?

JBR is already half completed and the other half to be done next month. I dont think it will have an adverse affect on rents in the marina but it might lower rents in other parts of the city.

here are my assumptions

1) most people who bought in JBR are either buying for one of the following reasons

- dont want to rent anymore and wanna move in
- bought this as a vacation home for when they are in dubai
- bought as an investment and want to exit when its completed

first two categories wont affect rent and the third i heard they have a freeze on people selling property there since there are issues with the land department (if someone is an owner of a JBR apt please confirm this)

2) JBR had a very flexible payment plan and when the project was launched there was no mortgages in the UAE so i can safely assume that most people bought these apartments cash. Which means they dont have pressure of mortgage payments and thus they can keep an apartment empty rather than lower its rent price.


Now that being said i think there might be a drop in rent prices in other areas (ones that are very overpriced right now) like Bur Dubai, Barsha, Diera, etc... but who knows those apartments might be snatched quickly by newcomers not giving enough time for rents to come down !!!

I have signed a two bedroom lease in one of the JBR towers earlier this week. I have done pretty extensive research prior to settling for JBR and have seen rents come down by 10-20k for the same flats in a month. So rents have definitely gone through some rationalization at JBR. But there's still a pretty wide range of rents that landlords demand for similar apartments. For example, the place I have rented is for 145k. Similar places were going for as high as 160k some time back and some are still demanding that much. Basically, it all depends on the landlord's situation. Some paid cash for their properties and don't mind keeping them empty while others are more shrewd and adjusted the rents downwards to lock in a tenant now before additional supply at JBR hits the market. One thing is for sure...prospective tenants have a lot more supply and choice (albeit in the form of mainly apartments at JBR). Once all apartments are occupied and the whole project is fully up and running (when the 400 or so retail outlets are filled up), people will look to move into those apartments from other places in the Marina which should put pressure on rents elsewhere. Or Dubai might continue to see an influx in expats at the same rent and the housing shortage might be here to stay!

Maad

see if you can find out more about the resale of JBR, i am seriously considering buying so any info would be good




cheers mate

garciafromuk wrote:I have signed a two bedroom lease in one of the JBR towers earlier this week. I have done pretty extensive research prior to settling for JBR and have seen rents come down by 10-20k for the same flats in a month. So rents have definitely gone through some rationalization at JBR. But there's still a pretty wide range of rents that landlords demand for similar apartments. For example, the place I have rented is for 145k. Similar places were going for as high as 160k some time back and some are still demanding that much. Basically, it all depends on the landlord's situation. Some paid cash for their properties and don't mind keeping them empty while others are more shrewd and adjusted the rents downwards to lock in a tenant now before additional supply at JBR hits the market. One thing is for sure...prospective tenants have a lot more supply and choice (albeit in the form of mainly apartments at JBR). Once all apartments are occupied and the whole project is fully up and running (when the 400 or so retail outlets are filled up), people will look to move into those apartments from other places in the Marina which should put pressure on rents elsewhere. Or Dubai might continue to see an influx in expats at the same rent and the housing shortage might be here to stay!

rents have come down, i was able to get a 2 bedroom at JBR for 125 on a high floor. so you can def haggle prices with the landlords. this was 1.5 months ago.

JBR rents and sale prices vary by a huge amount by a/ by floor b/ by view