According to the latest report by popular UAE real estate portal Bayut, rental prices for some apartments in Dubai declined by 25% in a quarter, while other residential rentals, on the contrary, increased by 17%.
Dubai rental market witnessed a further decline in July, but some bigger apartments in popular Dubai areas are still in high demand among tenants and therefore more expensive, the report says.
Location is what counts in Dubai real estate market. But floor area is also important. That’s why small one-bedroom apartment rentals in such Dubai areas as Downtown Dubai, Dubailand and Jumeirah Lakes Towers (JLT), went down, while two and three bedroom apartment rentals in some areas increased by 15% and more.
Studio rental rates in Bur Dubai dropped nearly by USD 3,000 per year, while one-bedroom apartment rentals fell by 26 %, but two-bedroom apartment rentals rate increased by 16.2% during the same period.
Dubai International Financial Centre (DIFC), Shaikh Zayed Road area and Downtown Dubai now offer cheaper one bedroom apartment rentals — rental rates for such accommodation there decreased by 8.5% in a quarter.
Haider Ali Khan, the company’s CEO said that “Earlier, Downtown Dubai and Business Bay traditionally formed the list of most popular localities along with Dubai Marina. However, we have now noticed JLT and Bur Dubai generating more searches, driving their popularity up.
“Although we can assume that the affordability of these areas has made them popular, there is no hard evidence to support people having actually moved out of areas higher up on [our] popularity index previously or that a shift actually occurred.”
Jumeirah Lakes Towers (JLT) still has enough affordable one bedroom apartments for rent, that’s why one bedroom apartments rentals there declined only by 2.5% in a quarter, while expensive studio apartment rentals fell by 12.5%.
Thanks to such extremes in pricing at the rental market the average decline in prices is only 2% for the second quarter, according to Bauyt.