What can be expected for the rental prices here.. yes we knwo the market is down but for a prime area should units still not attract a fair and decent rental?
So convention wisdom would imply. But let's look at the facts. Old Town, which is an exclusive project in the Downtown/Business Bay area has an occupancy rate of between 50-60%. There are many units there sitting vacant. Don't take my word for it. Just take a stroll around and see how many dark windows abound at night. The cheapest One Bedroom in Old Town is now listing at 85K. That is just the list price. I'm sure you can get one for less with some haggling. Just a few months ago you would be hard pressed to find a nice unit in Mankhool for that price.
Also, Burj Views (another development with well over 500 units) is being handed over almost at the same time as Executive Towers. The inventory is much higher in Executive Towers, the vast majority of which is owned by investors and not end-users.
Burj Views is surrounded by the construction of Business Bay on virtually all sides. It is expected that rents in this building will be appropriately low. I wouldn't be surprised if you can get a 1BR for 70K or even 65K at Burj Views given that you're going to be surrounded by the noise, dust and inconvenient access resulting from 24/7 construction year-around.
So how much is your unit going to rent for? That's anybody's guess, but if I had to put a figure on it, I'd say you're be doing really well at 75K. And that's assuming you can find a tenant in this market.
