The situation in the rental sector of the Dubai real estate market remains quite ambiguous. While some areas and market segments see landlords reducing rents to 3%, other areas are still in too great demand with month-on-month rents increase of 1.7%, the latest report by the analytical real estate portal Bayut says.
So, if you look at the sector of apartment rentals, the average rent showed an upward trend there, increasing by 1.79% in October. And generally, the analysis of more than 18,000 of property listings in Dubai, gave Bayut experts a reason to conclude that the average annual rents in the emirate had a slight tendency to increase — from 0.78% to 3% in the last month, depending on the city area and type of housing.
An average studio apartment rents in Dubai stand now at USD 16,800 pa, while one-bedroom apartment rents fell marginally by 1.79 per cent to around USD 27,500 pa. At the same time bigger apartment rents in the four-plus bedroom category increased by 3.19% in October to about USD 97,000 pa.
Meanwhile, Dubai's population keeps growing: in the first half of the year the emirate’s government approved over 200,000 work permits, which means that the demand for rental housing, and for affordable housing especially, will keep growing too.
“The strong demand in the rental segment is an indication of that vast number of professionals gradually taking up residences across the emirate,” Haider Ali Khan, CEO of Bayut, said.
The greatest demand from expats in this regard is recorded in such Dubai locations as Dubai International City, Discovery Gardens and Bur Dubai.