Several independent sources including Bayut.com has found out that rents in Dubai Marina have fallen slightly, making the Dubai real estate experts question if the locality is going to retain its top position in the local realty market.
The news report confirming the declining trends of renting an apartment in the locality has surprised many as Dubai Marina was well thought to be recession-proof locality among rich and elite tenants in Dubai. It is believed that striking spike recorded in the rental price of apartments in Dubai Marinaduring 2013 has made these units out of many tenants reach.
On the other hand, the localities such as Business Bay, Jumeirah Lake Towers, Downtown Dubai and Palm Jumeirah offer similar amenities and attractions to the tenants of somewhat lower rental price. The tenants are forced to think if paying such high rents for Dubai Marina apartments is justified. There is a group of realty analysts at Bayut.com, the leading Dubai property portal, who believe that the slight drop in rental price in Dubai Marina i.e. 0.8% is in response to the addition of new apartment units in the community. Nonetheless, a combination of different factors has caused a slight drop in value and demand of Dubai Marina apartments for rent.
It is also interesting to note that unlike Dubai Marina, the overall status of the rental market in Dubaitells a different story. During the Q1 2013, the average rent of apartments in Downtown Dubai, Palm Jumeirah, Business Bay and Jumeirah Lake Tower went up while the rent in Dubai Marina dropped slightly. It is believed that the community can recover from this drop as soon as some ongoing infrastructural developments complete here. Included in the ongoing infrastructural developments is the construction of a 10 kilometre long metro line that is meant to provide a smooth and uninterrupted link between Dubai Marina and Jumeirah Beach Residence.
Since rental trends decide the investment trends in most localities of Dubai, the effects of dropping rentals can reflect in the price of Dubai Marina apartments if this drop continues. As of May 2013, the rates of Dubai Marina apartments look strong and stable but the property agents and experts believe that locality has reached a saturation point where it not only needs varied attractions but more promising amenities in order to continue getting the same sort of attention from tenants and investors that it proudly cherished from many years as the top property in Dubai for residential and thus investment purposes.