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Over the last 12 months in Dubai, fell by 10 per cent plus. This is the average decline in rents for residential real estate in Dubai over this period.
These prices today allow you to rent a studio in at a price starting from AED40,000 per annum, or from AED35,000 plus in the central and most popular area of .
One bedroom apartment in The Greens cluster can be rented out for AED50,000. According to the latest report by Asteco consultancy, in all three of these Dubai areas, rents fell by 11-12 per cent over 12 months, as for to the end of September. The data was collected on the basis of open information from rental advertisements, as well as from the prices indicated in the lease agreements. The average price drop was 3 per cent in the third quarter alone.
These Asteco findings are based on prevailing trends in the mentioned residential areas. Prices may vary depending on the building, its relative age, amenities, etc. But today, you can hardly find a tenant, who was not able to bargain for a substantial discount on his rent from the owner upon the contract renewal. Moreover, not a single Dubai are has escaped substantial rental price cuts, experts say.
And the expected handover of a large volume of new housing in popular residential areas may lead to even greater pressure on rental prices. “This trend is likely to intensify due to the large volume of new housing expected in the short and medium term,” the Asteco report said.
Since the second quarter of 2014, there has been a 35 per cent decline in the residential sector in Dubai after the peak of 2014, when rental prices reached a six-year maximum after 2009.
At that time, rents were overpriced, as there was still not enough new housing in Dubai. Landlords could demand and receive what they wanted.
However, it would be most correct to compare today's rental rates with data from the beginning of 2017, when landlords could afford to put super-inflated rental prices for the last time on the market. From that moment and up to the present, rents have decreased by about 20-22 per cent.
As for new housing oversupply, according to Asteco, a little more than 20,000 apartments and 7,500 villas will be handed over till the year end in Dubai. Although these figures represent a noticeable decrease compared with previous forecasts, this is still quite a substantial amount, and a truly expanded volume of expected deliveries, compared to 2018, when 12,000 apartments and 2,750 villas were supplied.
However, the pace of new housing deliveries in the third quarter did somewhat decreased — up to 4,600 units, compared with more than 5,000 handed over in the first and second quarters of the year.
So where to look, if you want to find the best rental offerings in Dubai today? Head to , and most likely there you can rent a brand new studio for AED25,000 per annum. At International City, rental prices start at AED 18,000, while and studios are currently offered for lease at AED 24,000 per annum, Asteco reports.
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