Dubai rents 50pc lower than London, New York
Dubai, April 1, 2014
The prime rents in Dubai rose 13.6 per cent last year, while the lease rates are still below 50 per cent of those found in London and New York, said a report.
"Prime rents in Dubai ended the year almost 14 per cent higher, down from an annual rate of growth of 16 per cent last quarter," Kate Everett-Allen, International Residential Research, Knight Frank, was quoted as saying in the fourth quarter prime global rent index report, said the Emirates 24/7 report.
"A two-tier market emerged in the second half of 2013 with secondary locations recording a stronger rate of growth than those in the emirate's prime developments," she said.
Dubai has introduced a new rent cap that has limited rent increases for existing tenants between five and 20 per cent.
The prime global rental index, which measures the performance of prime residential rents across 17 cities worldwide, saw an increase of 4.8 per cent in 2013.
In its Wealth Report 2013, Knight Frank said Dubai's prime luxury properties were over 10 times lower than Monaco, the world's most expensive residential property market.
According to the prime rent index, Hong Kong saw rental growth slowing due to the reduction in housing allowances and fewer expat arrivals. Besides, tenants found landlords more willing to negotiate on rents than before, the report said.