Dubai’s property market is sizzling hot with average rents in the emirate increasing by 22 per cent, according to real estate services firm CBRE . In its rental report that looked at property market trends in the first half of 2023, the organisation notes: “New rental rates surpassed the average achieved rates for renewed registrations. In July 2023, for apartments, the average premium for new rental contracts compared to renewed contracts stood at 20.
1 per cent. ” Image credit: CBRE Similarly, the difference between villas’ new and renewed rental rates in Dubai as at July 2023 is 25. 2 per cent.
This increase in rental prices is driven by new tenancy contracts signed in the emirate. The report notes that the total number of tenancy contracts reached a total of 325,727, a 43. 5 per cent increase from the 227,011 contracts registered in the same period in 2019.
The report looked at 703,000 residential rental transactions between January 2018 and July 2023, split between apartments and villas, to understand the strength of the trend currently underway in Dubai’s real estate sector. The below table highlights the premiums of new rental contracts compared to renewed contracts by community, as of July 2023. This steep rise in the rental market has led to a drop in the total number of new contracts signed as tenants prefer to continue living in existing properties to avoid additional costs.
Additionally, new rental contracts registered a 12. 6 per cent drop, whilst renewed registrations consequently grew by 29 per cent. Dubai rental market sees massive growth Despite the continuing upward trajectory of the rental market in Dubai, certain communities continue to remain affordable for the average family in the city.
Realty listing platform Property Finder released a list of affordable areas in the emirate, along with their amenities, and price range. Here are the top five cheap areas to rent in Dubai: 1. International City A community set up in 2002 by developer Nakheel, the International City sits at the top of the list of affordable rental communities in Dubai.
With easy access to Dubai Silicon Oasis, Downtown Dubai, and the Dubai Airport, this community offers something for singles as well as families. Price range: 1-bedroom apartment: Dhs30,000 – 33,000 (yearly) 2-bedroom apartment: Dhs45,000 – 48,000 (yearly) 3-bedroom apartment: Dhs60,000 (yearly) 2. Jumeirah Village Circle Family-friendly, spacious, and a range of choices makes Jumeirah Village Circle – or JVC – a much desired community to live in.
With good connectivity to Al Khail Street through Hessa Street, as well as Sheikh Zayed Street, JVC is a popular residential community, preferred by professionals as well as families. Price range: 3. Dubai South An upcoming area with new developments, and easy access to major infrastructure projects such as Al Maktoum Airport, and the Jebel Ali Port zone, makes Dubai South the preferred choice for families as well as those seeking a quiet living community.
It’s location on the Sheikh Mohamed Bin Zayed road make it easily accessible to most commerical hubs in Dubai. New developments offer a range of choices for those looking to rent, along with a host of amenities. Price range: 4.
Dubai Investments Park Dubai Investment Park (DIP) has been developed as a diverse and vibrant hub for industrial, commercial, and residential properties, which makes it a great place for people from all walks of life to call home. DIP also offers a range of modern and affordable housing options, as well as several schools, parks, and community facilities, providing you with a comfortable and enjoyable lifestyle. Price range: 5.
DAMAC Hills 2 Damac Hills 2 is a master-planned development by developer DAMAC. Developed as a secluded yet well connected community, DAMAC Hills 2 is popular with young families. Located off Jebel Ali – Lehbab Road, the community is within easy access to major highways and transportation links.
Price range: Also read: See inside Dubai’s Dhs600m penthouse, along with ‘Hay Room’.
From: gulfbusiness
URL: https://gulfbusiness.com/skyrocketing-rents-5-most-affordable-places-dubai/
