According to the latest quarterly report by the Bayut real estate portal, the rental market in Dubai continues to grow.
In the first quarter of this year, rental prices for apartments and villas increased by up to 17 percent, spanning affordable, mid-tier, and luxury market segments.
This continued boom has been fueled by robust calls among local and overseas property seekers, resulting in tenants experiencing increasing pressure on their budgets. This has forced many to seek out cheaper alternatives, such as moving to less central areas or buying property instead of renting at such high prices.
Yet, according to the search trends analyzed on Bayut, the upward trend in property prices across Dubai has stabilized considerably, with specific areas reporting declines in average prices.
This comes as a healthy influx of new properties ensures adequate supply to meet the demand for housing within the emirate.
Apartment rentals see the highest price increase
This year, apartment rental prices in neighborhoods including Deira, Internet City, and Al Nahda have increased significantly by up to 17 percent. These regions are gaining recognition among finances-conscious tenants because of their affordability. Typically, the affordable apartment market segment sees only 1 to 5 percent rental increases, signaling a significant increase.
According to Bayut’s data, the average annual rent for a two-bedroom apartment is now approximately AED 76k in Deira, AED 55k in Al Nahda, and AED 83k in Internet City.
Mid-tier flats in Jumeirah Village Circle, Dubai Silicon Oasis, and Bur Dubai have also seen a significant boom in rental prices, with chosen residences recording up to as much as 12%.
Conversely, luxury apartment rentals have decreased by as much as 4%. Despite this, Dubai Marina and Business Bay remain popular locations for luxury apartment rentals, with the maximum search activity on Bayut in these regions.
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Rental trends for villas
According to the report, DAMAC Hills 2 and Mirdif have gained the most attention from tenants looking for affordable villas. These neighborhoods present competitive rental prices and are famous among tenants peeking for more immense accommodation options. Villa properties have generally become cheaper this year, recording a price increase of up to 3 percent since the beginning of this year.
There is a prominent resurgence in the need for family villas. The market has noticed a heightened interest in larger family-oriented residences, especially within luxury and mid-tier communities. This indicates a shift towards more immense properties and a selection for family-friendly living environments.
Mid-tier villas in preferred areas of JVC and Arabian Ranches 3 have achieved vogue, with rental prices rising by up to 17%. This figure aligns with the typical increase for mid-tier villa rentals this year, around 12 percent.
Meanwhile, luxury villa rentals have increased by 13 percent, with areas such as Dubai Hills Estate, Al Barsha, and DAMAC Hills being the most popular. 4-bedroom homes in Al Barsha and DAMAC Hills recorded slightly higher rental increases of up to 14%.
