Despite the fact that average prices both in Dubai property sales and rental segments declined markedly in recent months, some areas are showing growth, and in Abu Dhabi, this situation is observed over all areas — Dubizzle analytical report says.
Rentals for studio apartments in such areas of old Dubai, as Deira and Bur Dubai, increased by 18% and 8.3% in the 2015 second quarter, respectively. While three months ago a studio apartment annual rent there could cost an average of US $ 16,300, today the cost of such housing annual rent is not less than US $ 17700. Larger three bedroom apartments rentals in these areas, too, increased by an average of 5.33% in the quarter, from US $ 40,800 to US $ 43,000 per year.
The rise in rental prices in old Dubai, according to Dubizzle experts, is driven by growing demand for these affordable units, with insufficient supply of a new housing at the background.
In general, the pricing both in real estate rental market and sales market in Dubai remains highly uneven. In the UAE capital Abu Dhabi, the situation is more stable in terms of the more even increase in rental prices. For example, two-bedroom apartment rentals on Saadiyat Island increased by 10% in three months, and three-bedroom apartment rentals grew by 14.3% during the same period of time.
But the central island of Al Reem still remains the most sought after area in Abu Dhabi rental market: potential tenants did more than two million searches for rental housing in the area. At the same time, Dubizzle experts called Mussafah East area of Abu Dhabi, where Mohammed Bin Zayed City and Khalifa City residential complexes are situated, the most affordable district for tenants in UAE capital.