Rent in Dubai: Areas with Surging and Dropping rates

For certain blossoming communities, there is a rise in rent in Dubai because inhabitants choose to look for high-quality apartments. This is despite the incessant decline of rents in the previous years, which is projected to continue throughout 2021 as well. 

Some Statistics and Predictions: Rent In Dubai

Dubai’s apartment rental market is showcasing fluctuating behavior. The average rate of villa rents rose by 4.7 percent. However, the average apartment rents have gone down by 10;3 percent in the last year until April 2021. Presently, it is calculated that 17 percent of the property units in Dubai are uninhibited. This means that the Dubai market is favorable for tenants.

HP Aengaar, CEO of Asteco, believes that said that to boost the business, owners will keep offering incentives such as discounts. They might also provide an option for flexible payment with up to 12 cheques, options to use debit and credit cards for payment, and waiver on agency fees to keep holding on to tenants.

All this is given despite certain regions have shown promising trends.  However, it may be withdrawn if demand surges. Asteco predicts that this year in Dubai, 30,000 apartments and 5,00 villas will hit the market.

Where The Rents Are Surging

According to Aengaar, there is a rise in almost all the villa communities all over Dubai. This is especially the case in certain blooming areas such as Dubai Hills Estate and Wasl Gate. There is also increasing demand for rental properties in high-end and mid-end market apartments such as DIFC, Downtown Dubai, Palm Jumeirah, Business Bay, and Dubai Marina/JBR.

Taimur Khan, head of research at CBRE Middle East, added that there are a broad range of communities that have faced growth in rent in Dubai, especially in District One, Emirates Hills, The Lakes, MBR City, Dubai Hills Estate, and Jumeirah Golf Estates

Edward Macura, a partner at real estate consultancy Core, said waterfront and well-known villa communities such as Palm Jumeirah, Emirates Hills, The Springs, The Meadows, and Arabian Ranches have undergone a continued surge in rents over the initial half of this year. 

But, the exterior zones of Jumeirah Villa Circle and villa communities in Dubailand remain to witness negative movements in rents. This because of a comparatively greater range of supply. In a lot of these apartment districts, not losing out on the existing tenants is a priority. 

Where The Rents are Dropping

Al Jadaf, Bluewaters Island, Trade Centre, The Greens, Barsha Heights, and Jumeirah Lake Towers (JLT) are the regions that witness the highest decline in rents. This is for the first half of this year, that is, till May 2021, as Taimur Khan said.

These days, tenants look for better facilities and greater quality in apartments, leading to such high rates of decline in these areas. Residents have taken advantage of recent advancements and communities offering better services and comforts.

This doesn’t apply to certain communities which have more stable markets. In such a case landlords could ensure a rise in the rental rate. Even relatively cheaper communities like International City and Discovery Gardens had to face a decent decline in the first quarter, according to Iyengar.