In a paradox peculiar to the vagaries of Dubai’s real estate market, it’s cheaper today to rent-out a 2-bed villa in the posh The Springs development than it is to rent-out a 2-bed apartment in Discovery Gardens, at best described as a middle-income residential accommodation.
According to Gulf Business research, a 2-bed villa in Emaar Properties’ The Springs can be rented-out for as little as Dhs80,000 today while renting out a 2-bed apartment in Nakheel’s Discovery Gardens will leave you poorer by at least Dhs90,000.
A real estate broker Gulf Business spoke with attributes the discrepancy to the high maintenance fees for the latter. “At roughly Dhs30 per square foot, the annual services charges for a 1,500-sq ft 2-bedroom apartment at Discovery Gardens work out to about Dhs45,000 a year, in effect slashing the landlord’s income by half at the current rental rate,” he explained. “Compare that with approximately Dhs7,000 that a landlord of a 2-bed villa in The Springs pays,” he pointed out.
Although rentals in Dubai have dropped by almost 50 per cent in some communities since the last quarter of 2008, high maintenance fees charged by some developers have increasingly come under criticism. A Nakheel spokesperson told local media earlier in the month that the developer is looking to reduce service charges in some of its communities, including Discovery Gardens.
Tell us what do you think:
