The dissimilarity of rental pricing remains one of the main characteristics of the Dubai rental market. While in some areas prices are falling, other locations, on the contrary, face further rental growth due to demand.
Real Estate Regularity Authority (RERA) has issued its annual official rental index update suggesting some price changes. The index showed that prices have declined significantly in some Dubai areas, and in others rentals remained unchanged or showed an increase of 3-5%.
Apartment rentals in such popular Dubai areas as Business Bay and Downtown were up by an average of 2.7 and 2.4% respectively, while rental expenses have remained unchanged for tenants in Jumeirah Lake Towers (JLT). According to the RERA 2016 rental index, you can still rent an apartment in JLT for USD 20,420 to USD 25,000 pa.
One-bedroom apartments in Discovery Gardens now cost 3.5% more in comparison with the July 2015 rates: rentals for this kind of units there are about USD 17,000-20,000 pa now.
Much still depends on the apartment size: small studios and one-bedroom apartments are usually in high demand, that’s why studios and one-bed rentals in Jumeirah Village and the Greens have not changed, while bigger apartments have slightly decreased in price.
The situation is similar in Dubai Marina. Everything depends on demand here as well. The average apartment rentals in this Dubai area stand for USD 24,500- 30,000 pa.
International City keeps the title of the most affordable Dubai areas for tenants. Rentals here declined by 14% since the middle of last year and now stand for an average of USD 10,500-12,000 pa.