Renting studios in Dubai: neighborhoods that rise in price the fastest
Top neighborhoods where rental rates increase in Q3 2016
Despite the continuous emergence of new affordable residential estate objects on the market of Dubai, the supply still can’t meet the demand completely. The number of expats ready to move to Dubai from the neighboring emirates or from other countries seems infinite, and many of the tenants practicing apartment sharing are also ready to move into separate residences.
As a result, renting studios in Dubai doesn’t become any cheaper, and in some neighborhoods even gets more expensive. And those intended to invest in estate in order to generate passive income always keep track of those changes and don’t hesitate to buy property when the time is right.
In Q3 2016 renting studios in Dubai got more expensive even in the most luxurious neighborhoods
Because efficient investing is not only purchasing something that will return your investments, but will also keep on growing in price and subsequently bring bigger revenues. And in Q3 2016 the cost of renting studios in Dubai most changed in the following neighborhoods:
Here studios got 11% more expensive within 3 months, rising up from 30,000 AED in the end of Q2 to 34,000 AED in Q3. Despite the remoteness from the city center, this neighborhoods is in demand among numerous expats because of its bus traffic and Dragon Mart, where you can buy everything essential for living.
Rates in Culture Village changed dramatically in terms of absolute change, but not so radically in terms of relative change: 6000 AED from 72000 to 78000 AED (8%). It’s worth noting that Culture Village, compared to International City is an expensive and prestigious neighborhood. So an increase in rental rates in this area indicates that even affluent purchasers show interest in studio apartments.
Downtown Dubai, or a place where cost of renting studios in Dubai shouldn’t have gone up, but it did
Some analysts see this fact as an indicator of market’s recovery. Throughout the last 3 full months rental rates in the most expensive neighborhood of Dubai, Downtown Dubai increased by 5%, from 77,000 AED to 81,000 AED. The majority of experts connect the growth of rates with the commissioning of Dubai Water Canal, which made the neighborhood more attractive for tourists.
Another surprise: the average rate for studio rent in Business Bay went up by 4% and straight to 74,000 AED, which is mostly explained by the launch of the Marasi project.
Renting studios in JVC got 4% more expensive (from 51,000 to 54,000 AED), but analysts unanimously state that this is related with the upcoming EXPO-2020.
To sum it up, expensive property in Dubai is getting very attractive for investors, and soon this trend could eclipse the increase in demand for affordable property.