Better access drives up rents and sales in Dubai’s JLT

Rent prices for one bedroom apartments in the high-rise development rose by 29 per cent in the first quarter of this year, compared to the same period last year - according to the latest figures by Dubizzle.

Rents and sale prices at Jumeirah Lakes Towers in Dubai have risen significantly in the first quarter of 2014, according to the latest figures by Dubizzle. Sarah Dea / The National

DUBAI // Improvements to roads and community facilities in Jumeirah Lakes Towers have made the development one of the most attractive areas in Dubai to live, according to new statistics.

Rents for one-bedroom apartments in the high-rise development rose by 29 per cent in the first quarter of this year, compared with the same period last year, according to figures released by the classifieds website Dubizzle.

In addition, sale prices for one-bedroom flats increased by 47 per cent.

“JLT is an area that has faced problems, particularly with bottlenecks leading in and out of the area,” said Ann Boothello, a property analyst at Dubizzle.

“Now that work has finished. There is better infrastructure, better facilities, such as restaurants and cafes, and it is now enjoying its time in the spotlight.”

The area had faced traffic problems for four years as transport bosses sought to improve road access. In January, that work came to an end, improving the day-to-day lives of residents. In addition, one of the community's three lakes was filled in and transformed into a 55,000-square-metre park.

“It was always regarded as the poor man’s Marina,” said Mario Volpi, managing director of Prestige Real Estate in Dubai. “Now, with the opening of a very family friendly park it has given the place a slightly different dimension.

“It has completely redeveloped itself and is undergoing something of a renaissance now.”

He said the two metro stations serving the neighbourhood, coupled with vastly improved road access, had generated more interest in the area.

“From my point of view as an agent, we’re seeing lots of interest in the area,” Mr Volpi said. “I’m not surprised we’re seeing a large increase in rents.”

Dubizzle’s statistics noted that sale prices for one-bedroom apartments in JLT rose from Dh850,000 in the first quarter last year to Dh1.25 million in the same period this year, while average one-bedroom rents rose from Dh70,000 to Dh90,000 in the same period.

Australian Mark Burke, 42, is currently renting a one-bedroom flat in Global Lake View in JLT for Dh80,000.

“The rents are going up, but JLT has become an easier place to live and get around in after they changed the road access,” he said.

“Our rent’s up for renewal in July, but we’ll probably stay here, although we might move to a different building.”

The Dubizzle report included statistics for major developments in Dubai and Abu Dhabi.

Growth was relatively uniform across the board.

In the capital, rents increased most significantly in Khalifa City A, where the rental price for three-bedroom flats went up from Dh95,000 to Dh110,000.

The biggest increases were in Al Raha Gardens, where three-bed villas rose from Dh1.9 million to Dh2.7 million, an increase of about 42 per cent.

Ms Boothello said the upswing in the market was at least partly due to the Expo 2020 win last year.

“On the whole 2013 was a significant year with growth across the whole market,” she said.

“It remains to be seen whether we will see the same level of increases this time next year. There’s a general sense of the growth being tempered and beginning to level off.”