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dubai rentalsPalm Jumeirah is the most costly community to lease a two-bedroom apartment in Dubai rentals, but the maximum boost was observed by Discovery Gardens in the first quarter of 2014, based on a new report released by Land Sterling. Typical rents for two-bed units in Palm Jumeirah were at Dh170,000 per annum, growing 6% in the 1st quarter compared to the final quarter of 2013, Land Sterling said in its Q1 report that was.

Discovery Gardens saw rents jumping 13 per cent same interval to Dh90,000 per year during the Business Bay rents for 2-bed units growing by 12 per cent each. Units were leased on per annum, respectively. 145,000 Dh.

Downtown Dubai are at Dh165,000 per year on average., and saw a 3% rise in the first quarter, compared to Q4 2013

In International City, on an average, a 2-bed rate is at Dh70,000 pa, with 1 / 4-on-quarter increase of 8%. Earlier this month, the rental increase quarter-on-quarter for Palm Jumeirah, Discovery Gardens and Downtown Dubai at 3, 4 and 6 per cent, respectively.

With the inhabitants of Dubai anticipated to grow to 3.1 million in 2020 (at an assumed CAGR of 5%), analysts estimate home requirement to increase by 170,000 units in 2020, the report stated. “In the run-up to World Expo 2020, most of the town’s supply estimates – residential, office, retailing and hospitality are being built depending on the development requirements needed to host this kind of international event.

“Though builders may favor hospitality developments over residential types throughout this interim period, home supply must be kept at the present historic average of 21,000 models per year to prevent any shortage, which might result in spikes in sales cost and rent,” Land Sterling analysts asserted.

Dubai was not likely to witness over-supply of housing units with pros and developers ruling out any glut in residential marketplace. HSBC Global Research said this month that Dubai rentals will see a supply of 90,000 new models by 2018.