Specialists of leading Dubai agencies regularly update their information on the most expensive and the cheapest areas for rent and for lease. And often in the top-list between the priciest there suddenly appear some ‘newcomers.’
Imexre.com also monitors changes in demand and rental prices in various areas of Dubai adding our data to the general statistics, and this time the one most unexpected to appear in the top five rental areas was the DIFC free zone, where the cost of renting one-bedroom apartment can reach today up to AED 130,000.
The rest of the top rental list is not surprising. As always, the most expensive property units in Dubai are leased and sold in areas such as Burj Khalifa, Jumeirah Beach Residence, Dubai Marina, Business Bay and a group of man-made islands of Palm Jumeirah. These areas attract investors’ major interest in terms of gaining the biggest rental yields, and both are most popular among tenants and agencies.
The world's tallest tower Burj Khalifa commands up to AED170,000 (USD46,000) per annum for a one-bedroom apartment. And on the palm-shaped archipelago rentals mostly depend on location (on the "trunk" or at the very edge of the ‘Crescent’ by the shoreline), as well as on the type of property (villa or apartment), pretty much as elsewhere. The maximum registered rental price for a 1-bed apartment here is up to AED155,000 pa (USD42,200).
The cheapest accommodation options can be found mostly in the periphery, in areas that do not often appear in the reports, such as Al Awir, Dubai Outsource Zone, Abu Hail, Al Ras, Naif, as well as quite popular and frequently mentioned in classifieds International City, International Media Production Zone (IMPZ) and the Gardens. The most expensive one-bedroom apartments here are leased at an average of AED30,000 - 35,000 pa (USD8000 - 9600).
Contrary to expectations, rental rates in Dubai as a whole haven’t decreased, mainly due to the shortened supply of new homes to the market.
Declan McNaughton, Chestertons’ UAE managing director, said: "For sure, some families are downsizing”. Yet many tenants are still on their so called ‘legacy’ rents, and due to the rental calculator presented by RERA, landlords are still free to increase such rents, aligning them with market rates, which, in turn, may effect in overall statistical uptick in rental prices in the next months, experts say. The current renewal cycle for August/September coinciding with the new school year will determine if there is any softness in rents.