Prepare your boxes: where have rents fallen in Dubai?

Published February 26th, 2015 - 09:13 GMT

We’ve been hearing for some time that Dubai rents are going to drop by about 5 per cent this year, but new data released by a property consultant on Sunday showed that a few locations have already started to see a slight decline in rates.

The bad news, however, is that the majority of the apartments are still offering higher rents compared to 2013. Asteco, a full service real estate company, said that Dubai rents posted a year-on-year growth of 7 per cent for apartments and 4 per cent for villas.

Asteco said a more significant drop in rents "could be on the cards" from 2016 onwards given that more supply will be entering the market, with around 12,000 new apartments and 2,000 villas expected to be completed this year,

Here’ s a quick look at the rental changes during the fourth quarter of 2014 and the prevailing rates for Dubai apartments in popular locations today.

Business Bay

Rent change between 2013 and 2014: 3%

Rents across all categories, from one-bedroom to two-bedroom flats ticked up by 3 per cent between the fourth quarter of 2013 and fourth quarter of 2014. One-bedroom apartments now cost Dh93,000 to rent, up from Dh90,000 in 2013. A two-bedroom flat now generally costs Dh135,000, up from Dh130,000, while a three-bedroom apartment has increased from Dh178,000 to Dh180,000.


Rent change between 2013 and 2014: 0%

What’s cheaper: One-bedroom and three-bedroom flats

It seems most tenants in Deira don’t need to worry about rent increases, especially if they’re staying in one or three-bedroom flats. Overall, rents have registered zero increase. The rent for one-bedroom apartment now costs about Dh3,000 less, with rates dropping from Dh68,000 to Dh65,000. Two-bedroom flats, however, have gone up from Dh85,000 to Dh90,000, while three-bedroom apartments now cost slightly cheaper, from Dh135,000 to Dh133,000.

Discovery Gardens

Rent change between 2013 and 2014: -2%

What’s cheaper: Two-bedroom flats

Rents in this neighbourhood close to Ibn Battuta Mall have registered a 2 per cent decline between 2013 and 2014. Prices for one-bedroom flats have remained unchanged, at Dh70,000, while two-bedroom flats have dropped from Dh83,000 to Dh80,000. There are no rates available for three-bedroom flats.

Downtown Dubai

Rent change between 2013 and 2014: 10%

One of the highly sought-after locations, Downtown Dubai has registered a 10 per cent increase in rents, with one-bedroom apartments rising from Dh98,000 to Dh118,000; two-bedroom, from Dh160,000 to Dh170,000 and three-bedroom, from Dh228,000 to Dh245,000.

Dubai Marina

Rent change between 2013 and 2014: 14%

Tenants looking for a one-bedroom flat near the marina can expect to pay Dh113,000 a year on average, up from Dh105,000 last year. Two-bedroom apartments now carry a price tag of Dh158,000, about Dh18,000 more compared to 2013. Three-bedroom flats have gone up from Dh178,000 to Dh210,000.


Rent change between 2013 and 2014: 7%

What’s cheaper: One-bedroom flats

Apartment rents in the Greens community have gone up by 7 per cent on average, although tenants can end up paying less if they choose a one-bedroom flat, which can be had for Dh83,000, down from Dh85,000 in 2013. Two-bedroom flats have registered a significant increase, from Dh135,000 to Dh148,000, as well as three-bedroom apartments, now costing Dh173,000, up from Dh155,000 in 2013.

International City

Rent change between 2013 and 2014: 1%

What’s cheaper: Two-bedroom flats

This neighbourhood that is within proximity to Dragon Mart is a favourite among the budget-conscious. Across all categories, rents have registered a minor increase, at one per cent. One-bedroom flats have gone up from Dh43,000 to Dh46,000, while two-bedroom apartments have dropped from Dh65,000 to Dh63,000.


Jumeirah Beach Residence

Rent change between 2013 and 2014: 15%

One of the prime locations registering the highest increase at 15 per cent, Jumeirah Beach Residence now offers one-bedroom apartments for Dh118,000 a year, up from Dh108,000 in 2013. Two-bedroom apartments have gone up from Dh135,000 to Dh163,000, while three-bedroom flats have hit as high as Dh200,000, up from Dh175,000.


Jumeirah Lakes Towers

Rent change between 2013 and 2014: 15%

Rents in this neighbourhood, which is also popular among expatriates looking for easy access to the Dubai Metro, have registered the highest increase of 15 per cent. One-bedroom apartments have gone up from Dh83,000 to Dh90,000. Rates for two-bedroom flats have increased from Dh110,000 to Dh133,000, while the going rates for three-bedroom apartments are pegged at Dh168,000, about Dh20,000 more compared to 2013.

Jumeirah Village

Rent change between 2013 and 2014: 4%

What’s cheaper: One-bedroom flats

One-bedroom apartments at Jumeirah Village have gone down from Dh70,000 to Dh65,000, while two-bedroom flats have increased from Dh95,000 to Dh103,000 and three-bedroom flats from Dh120,000 to Dh130,000.

Shaikh Zayed Road

Rent change between 2013 and 2014: 5%

If you’re looking for a one-bedroom flat, prepare to pay around Dh113,000 a year, up from Dh98,000 in 2013. Rates for two-bedroom flats have remained unchanged at Dh148,000, while three-bedroom flats have increased from Dh195,000 to Dh200,000.



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