original source Emirates Business 24/7
More than 60,000 people have already moved into International City, while about 20,000 residents are living in Discovery Gardens, according to NakheelNakheel.
"International City remains one of Dubai's most popular rental communities. Its affordability combined with its location makes it an attractive destination for local and international businesses, retailers, commercial establishments, traders and residents," a NakheelNakheel spokesperson told Emirates Business.
According to the master developer, International City is made up of 387 buildings, while Discovery Gardens has 245 buildings with the majority being owned by third parties.
Real estate agents said occupancy levels in Discovery Gardens and International City is currently around 60 per cent, up 15 per cent in the past six months.
"Real estate prices and rental prices in these two areas have dropped tremendously attracting many new occupants into the development," said Mohanad Alwadiya, Director, Harbor Real Estate.
However, the profile of people residing in Discovery Gardens and International City are more of tenants than owner occupants.
"Both these developments were sold off largely to investors than end-users, hence there are more tenants living in these developments than owner occupants," he said.
Last month, real estate analysts told this newspaper that prices of apartments in master developments such as Dubai Silicon Oasis, International City and Discovery Gardens had stabilised in the past three months, making them the most affordable developments for middle-income earners.
According to agents, the current prices in International City for a studio, one- and two-bedroom apartments were in the range of Dh275,000, Dh450,000 and Dh550,000 respectively, declining five per cent since the past quarter.
Besides, agents believe NakheelNakheel's recent move to drop service charges in Discovery Gardens will attract buyers into the development. Last month, NakheelNakheel dropped service charges on Discovery Gardens by Dh5 per square foot in line with Dubai's Real Estate Regulatory Agency.
According to Harbor Real Estate, current rents for one-bedroom apartments in International Media Production Zone (IMPZ) is about Dh50,000 per annum (payable across four cheques). In Discovery Gardens, the rents are Dh60,000 per annum (eight cheques), while rents in International City are at Dh50,000 per annum (payable across four cheques).
A two-bedroom apartment in IMPZ is currently rented for Dh70,000 per annum in four cheques. In Discovery Gardens, current rental are Dh80,000 per annum in four cheques while in International City, current annual rents is Dh75,000 in four cheques.
According to Asteco, a studio in Discovery Gardens and International City is being rented for Dh40,000 and Dh38,000. A one-bedroom apartment in Discovery Gardens, International City and IMPZ are Dh60,000, Dh55,000 and Dh45,000 respectively. A two-bedroom apartment is being rented for Dh85,000 per annum, Dh70,000 per annum and Dh60,000 per annum, respectively, in the same areas.
According to Colliers International, a two-bedroom apartment in IMPZ is being rented for Dh68,000 and Dh70,000 in International City. In Discovery Gardens, rents for a two-bedroom apartment is about Dh75,000 per annum.
When asked if rents were higher in freehold areas compared to non-freehold areas, Camilla Van Der Merwe, Head of Leasing, Dubai, Asteco Property Management, said: "There is not much of a difference between rental rates on freehold and non-freehold properties. Location, access, facilities, good property management and proximity to amenities determine how successful rental rates are for a particular area."
She said owners who have purchased for investment and leased their property are looking to retain their tenants by negotiating and reducing rents as per the current market rates.
"It is difficult to assess which areas are better and it really depends on individual preferences. Some people prefer to remain in the old areas because they have been living there for a long time and they are paying low rentals.
"All depends on which areas people work. Somebody working in Bur Dubai or Deira may not consider Discovery Gardens to live since it is farther out and commuting to and from work would be an issue even though rents are low there," said Der Merwe.
Kosta Giannopoulos, Manager, Residential Sales and Leasing, Better Homes, said in terms of rentals, one can find similar priced apartments in both freehold and non-freehold areas, but people choose to live in different areas due to personal preferences such as proximity to work and cultural reasons. "The non-freehold areas tend to have a more interest for bachelor and shared accommodation. Freehold areas tend to be leased by newer arrivals to Dubai," said Giannopoulos.
"It cannot be said that one area has higher rents than another except that International City offers the lowest rent of any freehold area. Areas such as Barsha and Nahda also offer one of the lowest rents for non-freehold," he said.
By Anjana Kumar
Posts
