There has been a rental increase in Dubai’s more affordable locations as well, with Deira asking rates up 2 percent from the second quarter to the third, while Sports City values rose by 5 percent.
The situation is similar at International City (up 2 percent quarter-on-quarter) and at Jumeirah Village (3 percent), according to the latest report from property services firm Asteco. The findings are in line with other recent reports suggesting that Dubai is seeing an end to the rental declines of the past two years.
How does that affect a person who wants to lease a one-bedroom apartment in Deira? Asteco sets a range ranging from Dh25,000-Dh52,500, depending on multiple factors such as age and quality of the building, size of the unit, etc.
If you head down to Dubai Sports City, a one-bed would cost between Dh27,500 and Dh42,500. There’s still more supply coming to that locality, which should keep rents under control.
Steady rise?
Recent rental trends in Dubai Marina and Business Bay also reflect an increase in asking rates. An average one-bedroom can fetch between Dh37,500 and Dh100,000, up 16 percent from last year. In Business Bay and the JLT cluster, one-beds cost between Dh40,000 and Dh75,000, respectively.
“The start of the Expo 2020 has lifted demand and rental rates,” Asteco says in the report. “However, the currently perceived positive market sentiment is believed to be short-term considering the significant amount of upcoming supply.”
In the first nine months, 12,000 new apartments were delivered in Dubai, and another 8,000 are expected to be ready for occupancy in the final three, the majority of which can be found at the Azizi’s Riviera community in MBR City.