- Property rents in Dubai will sustain an upward trend in 2023
- The current average rent for villas has crossed AED 268,000, while apartment rent has touched AED 90,000
- International City, Dubai Silicon Oasis, Bur Dubai, Discovery Gardens, and Dubai Sports City attract tenants due to lower rents
- The number of new contracts will be less than renewals in 2023
Dubai:
Despite the average increase in rental prices, certain areas in old and new Dubai will continue to attract tenants because of low rents and high demand in the market following strong economic activity in the emirate.
According to Zoom Property Insights, the average rent of villas in Dubai crossed AED 268,000 while apartment rents hit AED 90,000 last year. It is expected that a similar trend will continue this year, the Insights data says.
Ata Shobeiry, CEO of Zoom Property, believes that the high influx of expatriates moving to Dubai is a major factor that is driving the rental market.
“The number of people shifting their base in Dubai to seek employment and entrepreneurship along with an upscale lifestyle is rising with every passing day. This has led to demand for rental properties and a subsequent rise in the average rent. Still, there are some areas where tenants can find affordable housing options,” he said.
Affordable areas to rent apartments
According to the Zoom Property Insights, International City is the most affordable area to rent properties in Dubai, with average rent falling between AED 19,000 and AED 55,000.
Dubai Silicon Oasis is another area renters prefer for low rents as the average rent here ranges from AED 25,000 to AED 52,000 and AED 32,000 and AED 68,000 for studios and 1-bedroom apartments, respectively.
Bur Dubai, with an average rent of AED 20,000 – AED 60,000 for studios and AED 36,000 – AED 130,000 for 1-bed apartments is another popular area for affordable housing in Dubai.
Besides the aforementioned, Discovery Gardens (average rent between AED 30,000 and AED 60,000) and Dubai Sports City (AED 26,000 and AED 80,000) remain the preferred choices of tenants seeking affordable properties.
Affordable areas to rent villas
For rental villas, Deira ranks on top among the most affordable rents, with an average rent of AED 114,175. It is followed by Jumeriah Village Triangle and Jumeirah Village Circle averaging AED 149,598 and AED 155,529, respectively, as the annual rent.
Lastly, Reem, with an average annual rent of AED 157,414 is another popular community for affordable villas in Dubai.
“With rents further set to escalate in 2023, tenants will focus more on renewing contracts instead of signing new rental agreements. It’s the trend that was seen in 2022. However, affordable areas will get more traction, which will result in a moderate price increase in them as well,” Shobeiry concluded.
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