According to the Land Sterling consultancy report, rentals in Dubai's International Media Production Zone (IMPZ) increased by 13% in the third quarter.
Studio apartment rentals in IMPZ, one of the most affordable Dubai areas soared by 13% compared with the previous quarter, rising from USD 11,000 to 12,000 per annum. Meanwhile, one and two bedroom apartment rentals in the same area increased by 5% and 12% in the quarter, respectively. An average rental cost for these apartments is now about USD 16,000 to USD 27,000 pa, respectively.
Studio rentals also increased in Business Bay by an average of 3% in the quarter and reached USD 21,790 pa. Studio apartments in Discovery Gardens also got pricier for tenants by an average of 4%. And one and two bedroom apartment rentals increased the most in Dubai Sports City: here rentals increased by 3% in the last three month. At the same time, other Dubai areas, such as Downtown, Jumeirah Lakes Towers, and even Dubai Silicon Oasis, saw rental prices decline in the last quarter. The average rentals there reduced by 2-4%.
The most prestigious and popular Dubai area Dubai Marina also recorded a 2% decrease in rentals during the last three months. Now one can rent a studio apartment there for USD 22,000 pa, whereas three months ago, the average rental price of this property was USD 23,000 pa.
But overall, there is a tendency to rental increase in Dubai, Land Sterling experts noted. Additionally, “Second-tier communities such as Dubailand continued to satisfy price conscious tenants with affordable rental options and significant infrastructural improvements. And the increase in the transport costs offset most of the gains of lower rents in Sharjah/Ajman,” the report stated, forcing tenants to relocate back from Sharjah and Ajman to Dubai.