Is property rent in Dubai getting more expensive?
Recently we reviewed one analytical report and figured out that property rent in Dubai generally got cheaper in August, and this decrease of rates was significant: average 5% rate decline for all types of estate objects throughout the entire city.
Nevertheless, rental rates are even increasing in some areas of the emirate. What is more, there’s rate growth even in those segments of lodging where no one was expecting to encounter them.
Increase of rates for property rent in Dubai: areas and figures
For instance, there was a 2% increase of rates for studio apartment rent in Dubai Marina. A neighborhood, that has been showing steep decline of rental rates throughout the last 12 months. Average studio apartment rental here was 70 000 AED, while in July this figure had been 68 500 AED.
Rates for 1BR apartment rent in Dubai Marina, somehow, remained unchanged – 101 000 AED on average. Though the rates for 2BR, 3BR and more expensive apartments went down.
A similar situation was observed in Jumeirah Lake Towers – here the August rental rates for studio apartments grew by 2%, making it 64 000 AED. 1BR apartments became 3% more expensive, breaching the 90 000 AED mark. Likewise, more spacious apartments are becoming cheaper as well.
But a true surprise for the market was Bur Dubai, with its 11% rate increase for studio apartments rent compared to rather moderate rates of July. As of now, it costs 63 000 AED, and experts are rather reserved in their estimates regarding further rate changes in this neighborhood.
Downtown has relatively stable rates, still a slight increase of rates for 1BR apartments was recorded in August, making it 119 000 AED and currently moving towards the 120 000 AED mark. Commercial estate is getting more expensive, which is no surprise: this type of rent space rarely gets cheaper in Downtown.
Despite the overall decrease of rates, property rent in Dubai got more expensive in some neighborhoods
Note that the abovementioned neighborhoods are considered expensive. Areas, which have been showing steady rental rate decrease throughout the last few months due to abundance of good offers in less expensive areas. Such apparents signs indicate the tendency for market growth and imply that increase of rates for property rent in Dubai during another “high” season is inevitable.