Residential property rents in Dubai are falling again, even as some areas are witnessing a recovery in rents.
The recent data for the Q1 of 2021 showed International City and Deira as the most economical for tenants looking to rent an apartment.
Information from real estate consultancy Asteco showed rents begin from as low as Dh14,000 per year for a studio unit in International City in Q1 2021, and go as high as Dh100,000 per year for a three-bedroom apartment in Jumeirah Village.
Significant fluctuations were recorded across various developments and/or buildings going from single-digit falls to twofold digit increments. Villa developments – mature and rising – specifically recorded a rise in demand and therefore an ascent in rental and occupancy rates because of changing working and living habits.
Rental rate growth in Dubai, as per Asteco, in Q1 2021 was a “mixed bag” with positive and negative changes registered. Average apartment and villa rents rise by 1% and 4%, respectively, in Q1.
Dubai has witnessed a massive oversupply of residential units over the years with 24,850 units finished in 2020 and another 30,000 apartments are anticipated to be handed over this year. About 1,925 units were completed in Q1 2021.
Most affordable areas to rent an apartment in Dubai (annual rent)
Studio:
> Dh14,000 in International City
> Dh15,000 in Deira
> Dh17,500 in Dubai Sports City
> Dh17,500 in Discovery Gardens
> Dh20,000 in Jumeirah Village
1-bedroom:
> Dh20,000 in International City
> Dh25,000 in Deira
> Dh25,000 in Dubai Sports City
> Dh27,500 in Discovery Gardens
> Dh27,500 in Jumeirah Village
2-bedroom:
> Dh35,000 in Deira
> Dh35,000 in International City
> Dh37,500 in Dubai Sports City
> Dh40,000 in Jumeirah Village
> Dh50,000 in Discovery Gardens
3-bedroom
> Dh50,000 in International City
> Dh55,000 in Deira
> Dh60,000 in Dubai Sports City
> Dh65,000 in Jumeirah Village