Dubai Rents Hit Record Levels With Affordable and Expensive Residential Areas

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  • 2 months ago
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Dubai Rents Hit Record Levels

The Typical Annual Rent For Apartments And Villas Was DH89986 And DH268758, Respectively, In September.

An industry report issued on Thursday revealed that rents in Dubai increased 26.6% from the previous year’s figures. With estimated yearly rates now approaching Dh90000 for apartments and Dh260000 for villas. “Rental rate growth in Dubai has reached record levels… with villas and apartments rents rising by 26.7 % and 25.5 %, respectively, (in the 12 months to September 2022),” stated Taimur Khan, head of research for Mena at CBRE in Dubai.

According to the recent Dubai Residential Market Image published by CBRE, the average annual rent for apartments was Dh89986 and for villas, it was Dh268758. According to the report, the most expensive neighborhoods to rent in were Palm Jumeirah for apartments (Dh231397) and Al Barari for villas (Dh946270). Based on typical apartment and villa sizes for all unit combinations, the CBRE calculated the rates.

Here is a list of the cities where renting an apartment is most cost-effective (figures represent average annual rates for apartments):

  • International City: Dh30703
  • Dubai Sports City: Dh42824
  • Arjan: Dh44880
  • Dubailand Residential Complex: Dh36819
  • Dubai Silicon Oasis: Dh48518
  • Discovery Gardens: Dh48569
  • IMPZ: Dh39786
  • Jumeirah Village Circle: Dh55852

The following list of pricey residential areas includes average annual apartment rent figures:

  • Palm Jumeirah: Dh231397
  • The Old Town: Dh160195
  • Dubai Marina: Dh155173
  • Downtown Dubai: Dh189727
  • Jumeirah: Dh162951
  • The Views: Dh132015
  • Greens and Views: Dh115478
  • Downtown Dubai: Dh189727
  • Jumeirah: Dh162951
  • Business Bay: Dh112613

Here are a few of the most cost-effective choices for villas (figures show average yearly rents):

  • Deira: Dh112737
  • Reem: Dh141611
  • Damac Hills (Akoya): Dh185711
  • Jumeirah Village Circle: Dh141091
  • Al Furjan: Dh187974′
  • Mudon: Dh174508
  • The Springs and The Meadows: Dh177728
  • The Springs: Dh166724

Here are the regions where renting a villa is most expensive:

  • Al Barari: Dh946270
  • Green Community (DIP): Dh389777
  • Jumeirah Golf Estates: Dh367413
  • Palm Jumeirah: Dh925403
  • Jumeirah Islands: Dh585143
  • The Meadows: Dh328143
  • Jumeirah: Dh500635
  • Emirates Hills: Dh879077

Khan noted that 22.6% of the apartment communities in the emirate. Moreover, 96% of villa neighborhoods had higher rents in September than they did in the same period five years prior.

“In the condo and villa neighborhoods that we track, rents in respective communities are now sitting above their last peak in 6.5% and 28.0% of these communities.” He warned that this increase could “very significantly” start to affect the city’s affordability.

Khan warned that this could have a negative ripple effect on other industries. In addition, affect the country’s ability to compete, especially given the high cost of living and weaker global economy.

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