Dubai rents hit record high: Most Affordable and Expensive residential areas revealed
Rents in Dubai jumped 26.6 per cent from last year's figures, with average annual rates now reaching nearly Dh90,000 for flats and over Dh260,000 for villas, according to an industry report released on Thursday.
“Rental rate growth in Dubai has reached record highs, with apartment and villa rents increasing by 26.7 per cent and 25.5 per cent, respectively, (in the 12 months to September 2022)," said Taimur Khan, head of research for Mena at CBRE in Dubai.
In September, the average yearly rents for apartments and villas hit Dh89,986 and Dh268,758, respectively, based on the CBRE's latest Dubai Residential Market Snapshot.
The most expensive places to rent in were Palm Jumeirah (Dh231,397) for apartments and Al Barari (Dh946,270) for villas, the report revealed.
The CBRE calculated the rates based on average apartment and villa sizes, across all unit mixes.
Here's a list of the most affordable places to rent in (figures indicate average yearly rates for apartments):
International City: Dh30,703
Dubailand Residential Complex: Dh36,819
IMPZ: Dh39,786
Dubai Sports City: Dh42,824
Arjan: Dh44,880
Dubai Silicon Oasis: Dh48,518
Discovery Gardens: Dh48,569
Jumeirah Village Circle: Dh55,852
Here are some of the most expensive residential areas (figures indicate average yearly rents for apartments):
Palm Jumeirah: Dh231,397
Downtown Dubai: Dh189,727
Jumeirah: Dh162,951
The Old Town: Dh160,195
Dubai Marina: Dh155,173
JBR: Dh144,934
DIFC: Dh133,066
The Views: Dh132,015
Greens and Views: Dh115,478
Business Bay: Dh112,613
For villas here are some of the most affordable options (figures indicate average yearly rents):
Deira: Dh112,737
Jumeirah Village Circle: Dh141,091
Reem: Dh141,611
The Springs: Dh166,724
Mudon: Dh174,508
The Springs and The Meadows: Dh177,728
Damac Hills (Akoya): Dh185,711
Al Furjan: Dh187, 974
Here are the most expensive areas for villa rentals:
Al Barari: Dh946,270
Palm Jumeirah: Dh925,403
Emirates Hills: Dh879,077
Jumeirah Islands: Dh585,143
Jumeirah: Dh500,635
Green Community (DIP): Dh389,777
Jumeirah Golf Estates: Dh367,413
The Meadows: Dh328,143
Khan pointed out that the September rents in 22.6 per cent of the emirate's apartment communities and in 96 per cent of villa neighbourhoods are higher than figures in the same period five years earlier.
"In the apartment and villa communities that we track, rents in 6.5 per cent and 28.0 per cent of these respective communities now sit above their last peak."
This spike, he said, may start to impact affordability in the city "very significantly".
"This in turn may impact its competitiveness and lead a negative spill over into other sectors, particularly amidst a high cost of living and softer global economic backdrop,” Khan said.
