Dubai – “ASWAQ”
Dubai provides various accommodation options to suit a wide variety of income brackets, from the most expensive areas to the most affordable apartments to rent in Dubai. The most expensive apartments are in the Burj Khalifa, the Palm Jumeirah, Dubai International Financial Centre (DIFC), Jumeirah Beach Residence, Dubai Marina and Business Bay, while the most affordable apartments are available in Al Awir, Dubai Outsource Zone, International City, Abu Hail, Al Ras, Naif, International Media Production Zone (IMPZ) and the Gardens. This data was published by EZHeights.com, a classifieds website in Dubai.
Rental rates for a one-bedroom apartment ranges from Dh160,000 to Dh170,000 in the Burj Khalifa, while the same type on the Palm Jumeirah would rent for Dh120,000 to Dh155,000 and a similar unit in DIFC at Dh110,000 to Dh130,000.
Comparatively, a studio apartment rents for between Dh20,000 to Dh30,000 in Al Awir, Dh25,000 to Dh30,000 in Outsource Zone and between Dh25,000 to Dh35,000 in International City.
According to Chestertons’ Q2 report, the community of Remraam witnessed the steepest decline in rents in Q2 in the apartments segment at more than 3 per cent. After witnessing a flat market last quarter, apartments recorded nearly 1 per cent decline in rents. However, with most tenants still paying below-market rents, landlords can still command an increase in rents as per the Real Estate Regulatory Agency’s rent calculator.
GCP Properties’ head of research, Hussain Alladin said, “Although city-wide residential rents have fallen by 6 per cent since the peak, numerous tenants are still living on legacy rentals. Due to the rental bands enforced by the Rera, landlords are entitled for a rental increase, aligning the legacy rents with market rates. Moreover, due to the slowdown of delivery of units in the pipeline, rents have not fallen, despite expectations. The current renewal cycle for August/September which coincides with the school year will determine if there is any softness in rents. But thus far, there has been hardly any impact on rents despite predictions on the part of most market consultants.”
On the contrary, Declan McNaughton, managing director – UAE, Chestertons, is of the opinion that as some families are downsizing, landlords in general must come to terms with the fact that rents have declined and need to be realistic with their asking prices. He said, “It is better to have their property rented at a lower level for 12 months than waiting for a higher price that cannot be realised and ultimately lose out on monthly rental income.”