Dubai property: Rents up 8-10% in Downtown, Old Town
High-rise towers in Downtown Dubai are more popular than the Old Town area, according to real estate experts.
High-rise towers score better when it comes to amenities, a major factor behind their popularity as compared to the low-rise buildings in Old Town.
“High-rises are more popular [as they offer a] better view, more amenities [and give better] value for money,” Asal Abedi, Community Specialist, Head Office at Better Homes told Emirates 24|7.
According to Rushiraj Mehta of Legacy Real Estate, both are very popular, but high-rise towers beat smaller ones when it comes to amenities.
Both are in demand at different levels.
The Old Town is preferred by clients who appreciate low-rise buildings over the towers and high-rises are popular with other residents, believes Mehta.
The difference lies in the kind of amenities that are offered.
“Downtown buildings like Burj Views, Residences, South Ridge have squash courts, basketball courts, gym, play areas, pool, etc.
“On the other hand, Old Town just provides residents with a swimming pool. It does lack in amenities,” said Mehta.
However, rent appreciation has been seen in both, irrespective of preference.
Abedi states the rent jump has been around 20-30 per cent this year, depending on the location and the view.
Mehta quotes a figure of 8-10 per cent hike in rent for Old Town and Downtown towers.
As per his estimates, the rent of a one-bedroom unit in the area is between Dh75,000-85,000; a two-bedroom between Dh110,000-135,000 and a three-bedroom is available for Dh180,000-200,000.
“Burj Residence and Old Town Island have a comparatively higher rent index compared to other towers [while the other towers are at par],” said Mehta.
According to the Better Homes' rent estimates, a one-bedroom starts at Dh85,000 and goes up to Dh120,000.
A two-bedroom unit can fetch a rent of Dh125,000 to Dh170,000. while a three-bedroom apartment is available for Dh190,000 to Dh280,000.
Service charges in the area start at Dh20 per square feet. “Service charges are comparatively same for Downtown and Old Town at Dh20-25/sqft,” said Mehta.
“Service charges range from Dh20 to Dh34/sq ft,” added Abedi.
The Old Town is adjacent to the Downtown Burj Dubai.
Old Town and high-rise buildings in Downtown are in the same area but the former is officially the group of lower-rise buildings built in the traditional Arabic style that surround the Downtown Burj Dubai lake and the Palace Hotel.
Across the main Downtown Boulevard there are also many smart residential buildings that make up the Old Town.
The Old Town Dubai is split into six different districts: Yansoon, Reehan, Miska, Zaafaran, Zanzabeel, or Kamoon.
The buildings range from low-rise three-level apartment buildings to a number of exclusive mid-rise buildings with penthouses.
On the other hand, popular high-rise buildings in the area include Burj Views, 8 Boulevard Walk and South Ridge.