Apartment rentals in different areas of Dubai
Bayut’s reports for the previous month and the first half-year contain a handful of useful information. The most interesting bit is how apartment rentals are changing and how high are the actual rental rates in different areas of Dubai. In general, the report displays an overall decrease of rental rates by 5% in August, and the average annual revenue from rent is 5.6%. So how high are the rates in different areas of the city?
During the first six months of the year there was an increase of rates for 2BR apartments in DIFC (from 158 thousand AED in the second half of 2015 to 170 thousand AED), but somehow the rental rates for 1BR and 3BR apartments went down from 113 to 108 thousand AED for 1BR, and from 230 to 210 AED for 3BR apartments.
There was a slight decrease of rates for 1BR apartments in Downtown (from 115 to 110 thousand AED) and 2BR apartments (from 175 to 170 thousand AED), while the rentals for 3BR increased from 240 to 245 thousand AED.
No significant change in rates for accommodation in Dubai Marina (98 000 AED on the average), but 2BR and 3BR got cheaper: now 140 and 195 thousand AED accordingly.
At least no change in rental rates for apartments in the Palm: renting a 1BR costs 133 000 AED, 2BR – 150 000, 3BR – 195 000 AED. The rates in Sheikh Zayed Road remain stable as well (100 000 AED for 1BR, 130 000 for 2BR, 173 000 for 3BR) and in Business Bay (95 000 for 1BR, 138 000 for 2BR, 185 000 for 3BR).
Apartment rentals in many areas of Dubai somehow decreased throughout the first half-year, but in some cases rental rates are going up
Renting a one bedroom apartment in JBR would cost 110 000 AED (used to be 115 000 AED in 2015), 2BR – for 150 000 (compared to 148 000 in 2015), and 3BR – 183 000 AED (in 2015 it would have cost 193 000 AED).
There was a sizeable decrease of rental rates in JLT: 1BR rental is 83 000 AED for now (as opposed to 90 000 in 2015), 2BR for 120 000 AED (used to be 125 000 in 2015), and 3BR for 140 000 AED (153 000 AED in 2015).
Rental rates for more affordable lodging
The most radical decrease of rates in the sector of affordable lodging was for 1BR and 2BR apartments in Jumeirah Village: 1BR rentals went down from 73 000 AED in 2015 to 60 000 AED in the first half of 2016, 2BR – from 105 000 to 98 000 AED. In the meantime, 3BR apartments got more expensive – from 138 to 145 000 AED.
In other inexpensive areas apartment rentals almost haven’t changed. For instance, affordable accommodation in Bur Dubai costs the same as in 2015 (1BR — 73 000 AED, 2BR —108 000 AED, 3BR — 138 000 AED), and rates for 1BR apartments decreased to 73 000 AED (compared to 75 000 AED in 2015), for 3BR – to 133 000 AED (as opposed to 135 000 AED in 2015).
The lowest rental rates for now are observed in International City (50 000 AED on the average for 1BR, 65 000 AED for 2BR), in Deira (63 000 for a 1BR) and in Sports City (1BRs are available for 68 000 AED, while in 2015 it would have cost 74 000 AED).
Generally speaking, there’s more and more affordable lodging appearing on the Dubai market every day, though usually remoteness of those estate objects is a hindrance for many tenants. Still, there is a noticeable increase in developers’, purchasers’ and tenants’ interest towards peripheral boroughs, which are constantly developing and are going to host a big number of new construction projects before EXPO-2020. Perhaps, rates in these areas will only increase in the near future.