Dubai real estate portal Bayut analysts conducted the study, which confirmed the results presented by Asteco experts last week: rental prices in the central and most popular areas of Dubai are really going down.
Depending on the size of the leased property, the price of renting an apartment in such areas as Jumeirah Lakes Towers (JLT), Business Bay, Downtown Dubai and Dubai Marina has lately declined by an average of 0,21-6%.
The decline in rental rates is good news first of all for large families: renting a three bedroom apartment in JLT can now cost less by an average of 6.3% than in the first quarter of the year. The cost of renting such property in this district today is US $ 53,000 per year. One-bedroom apartments in the same area got cheaper by an average of 3.99% over the same period.
Haider Ali Khan, Head of Bayut, believes that the reason for rentals lowering in the prestigious areas of Dubai is that many tenants are moving into new areas, where you can rent a bigger apartment for the same price.
However, for small apartment tenants JLT is still not the most favorable option, because studios and two-bedroom apartments here, on the contrary, increased by 3.51% and 1.19% over the same period respectively. So such tenants can be advised to move to Business Bay, where one-bedroom apartment rentals declined by an average of 1%, studios rentals — by 3.2%, while two-bedroom apartment rentals — by 0.62%.
Besides, several new family parks will be completed in Business Bay in the near future, and Dubai Channel will be finished soon too, which will increase the attractiveness of this location.
Large apartments in Dubai Marina have also become more affordable for tenants: their rentals in the last two quarters decreased by an average of 1.47%, which makes such options even more favorable than renting large apartments in Downtown Dubai.