Market Report: Insights From Dubai’s Rental Property Market

Market Report: Insights From Dubai’s Rental Property Market

With lucrative investment options, an abundance of employment avenues and a unique futuristic lifestyle – Dubai has rightfully earned its ‘City of Gold’ title. As a global hub, the metropolitan city continues to attract people from all walks of life and investors from all over the world. Consequently, Dubai’s population has notably diversified and boosted the emirate’s real estate sector. Despite global uncertainties, Dubai’s property market has remained resilient throughout 2023. The upward trends in the rental segment portray investors’ keen interest in the futuristic city.

KEY TAKEAWAYS

Here are some major takeaways from the Dubai annual rental market report 2023.

• According to user trends, Al Nahda has topped the charts as the most popular non-luxury area for renting apartments, whereas Dubai Marina has reigned supreme as the top luxury area in the apartment renting segment.
• DAMAC Hills 2 (Akoya by DAMAC) has garnered the most attention among the affordable areas for renting villas and Al Barsha has taken the mantle as the top luxury area for villa rental.
• For rental villas, Dubailand and Al Barsha have witnessed the highest spike in average rental prices, with percentage increases of 42.54% and 31.08%, respectively.
• Ready-to-move projects like Rukan phase 1 and La Rosa among others in Dubailand have contributed to the spike in rent with state-of-the-art amenities. Similarly, Opera Villas and Oak Villas in Al Barsha have garnered immense attention and played a part in the rental hike.
• Jumeirah Village Circle (JVC) has seen the highest spike in average yearly rent for apartments (32%). Ready projects such as Nicholas Residence, Luma 21 and others have driven the increase in rent in JVC. Whereas DAMAC Hills has stood tall with a significant increase of 66.67% in annual rental prices.
• Compared to 2022, the affordable villas segment has witnessed an uptick of 16.64%, while the average rent for affordable apartments has increased by 13.13%.
• Similarly, DLD transactions have also shown upward trends. There has been an 8% rise in affordable areas for renting villas and a 17% increase for luxury villa rentals. Areas offering affordable rental apartments experienced a rise of 8.6%, whereas luxury apartment areas have recorded a 12.7% increase.

Overall, the rental market has had yet another glorious run in 2023. New projects continue to emerge in Dubai – expanding living options for people in the emirate. This has also contributed to the rising rental rates in the emirate. Similarly, the growing population tends to find a multitude of options for renting and can get a feel of what it’s like to live in the futuristic city that is Dubai.

The allure of luxury properties has continued to captivate investors’ and home seekers’ interest. Moreover, luxury amenities and state-of-the-art infrastructure enhance the living experience in Dubai as a whole. Furthermore, the Rental Dispute Settlement Centre, a division of the Dubai Land Department (DLD), works diligently to ensure the implementation of the law and protect tenant rights.

The Dubai Land Department has introduced initiatives to enhance renting experience in the emirate. For instance, direct debit rental payments in Dubai are among the many steps taken by the leading authority.

Renting properties in Dubai remains a viable option and for all the right reasons. Some of the areas in the emirate have, however, garnered more attention than others.

For luxury apartments, users have shown keen interest in Dubai Marina, Business Bay and Downtown Dubai. Compared to 2022, the average yearly rent for studio, 1 and 2-bed apartments has increased for all popular areas this year.

DUBAI MARINA

Dubai Marina has retained its spot as the top luxury for renting apartments in Dubai

The largest man-made marina in the world, Dubai Marina has retained its position as the top luxury area for renting apartments. The area has some of the world’s tallest blocks of skyscrapers offering majestic views of the emirate. Moreover, global attractions nearby such as Dubai Marina Walk and easy access to the beach add to the living experience.

The average annual rent for apartments in Dubai Marina has surged to AED 148k in 2023.

• The average yearly rent for the studio, 1 and 2-bed flats in Dubai Marina has increased by 18.33%, 17.39% and 17.99%, respectively.
• During 2023, the annual average rent for studio apartments in Dubai Marina was recorded at AED 71k. Whereas tenants, on average, paid AED 108k and AED 164k for 1 and 2-bed apartments, respectively.
• As per DLD data, the average annual rent for flats in Dubai Marina has witnessed a 13.46% rise.

BUSINESS BAY

Business Bay has also garnered huge attention as a top luxury area for renting apartments.

Dubai’s financial district, Business Bay, has attained the second spot as the top luxury area for renting apartments in Dubai. The bustling neighbourhood has garnered huge attention from business individuals and property seekers alike. The high-rise buildings in Business Bay are architectural spectacles. Additionally, renting in the emirate’s financial hub remains a treat in itself.

With a notable rise, the average annual rent for flats in Business Bay has risen to AED 114k.

• Showcasing positive trends, average rental prices for studio, 1-bed and 2-bed have increased by 20.69%, 21.05% and 19.17%, respectively.
• As per dubizzle’s data, the annual rent for studio apartments in Business Bay has surged to AED 70k. Similarly, the rising trends have witnessed the annual rent for 1 and 2-bed flats rise to AED 92k and AED 143k.
• Compared to 2022, DLD transactions for apartments in Business Bay have increased by 11.64%.

DOWNTOWN DUBAI

Downtown Dubai has garnered huge attention to become the third most popular area for apartment rental in Dubai. A global tourism hub, the bustling area is home to the iconic Burj Khalifa among other notable landmarks. Tenants continue to enjoy the ultimate living in the popular area of Downtown Dubai.

In 2023, the average annual rent price for flats in Downtown Dubai has increased to AED 214k.

• Portraying rental-friendly trends, the annual rent for studio apartments has decreased by 2.33%. On the other hand, the annual rental price for 1 and 2-bed flats has increased by 17.54% and 3%, respectively.
• On average, renters paid a yearly rent of AED 134k and AED 240k for 1 and 2-bed apartments. Whereas, the annual rent for studio apartments was recorded at AED 84k after a slight decrease.
• DLD transactions for rental flats in Downtown Dubai have increased by 15.19% in 2023.

Dubai Creek Harbour and DAMAC Hills have also captured user interest for apartment rental. The average yearly rent for flats in Dubai Creek Harbour has increased to AED 141k. Whereas, the bustling community of DAMAC Hills has observed a massive increase. The average annual price for apartments for rent in DAMAC Hills has reached AED 80k.

POPULAR LUXURY AREAS IN 2023 TO RENT VILLAS IN DUBAI

Villas provide the ultimate luxury living experience. Ample space, world-class amenities and breathtaking designs have made villas a predominant rental choice in Dubai. As per dubizzle’s data, Al Barsha, Jumeirah and Dubai Hills Estate have amassed huge attention for rental villas in 2023.

AL BARSHA

The dynamic community of Al Barsha has emerged as the top choice for renting villas in Dubai. Home to the UAE’s prominent tourist attraction point, Mall of the Emirates, Al Barsha remains a formidable living option. World-class amenities, proximity to major roads and the availability of several renowned schools in Al Barsha make the area an ideal family-friendly neighbourhood.

The average annual rental price for villas in Al Barsha has increased to AED 388k in 2023.

• The annual rental price for 4 and 5-bed have risen by an impressive 49.10% and 32.21%.
• The average annual rental price for 3, 4 and 5-bed villas in Al Barsha was recorded at AED 356k, AED 331k and AED 394k, respectively.
• According to DLD data, the rental transactions for villas in Al Barsha have increased by 18.8% in 2023.

The affluent neighbourhoods of DAMAC Hills and Palm Jumeirah have also grasped user interest in renting villas. The average annual rent for villas in DAMAC Hills has increased to AED 295k. Palm Jumeirah, the man-made island, has also witnessed an uptick. The average rent for villas in Palm Jumeirah was recorded at AED 1.3M.

According to dubizzle’s data, the majority of the budget-friendly areas have observed an increase in rental prices. The affordable areas for renting apartments have witnessed an uprise of 13.1% in 2023. Whereas, the budget-friendly areas for villa rental have experienced an uptick of about 16.64%.

The upward trends reflect positive signs for investors. Similarly, renters get a plethora of options for renting in Dubai.

POPULAR AFFORDABLE AREAS IN 2023 TO RENT APARTMENTS IN DUBAI

As per dubizzle search trends, Al Nahda, Jumeirah Village Circle (JVC) and Bur Dubai have emerged as the most desirable affordable areas for renting apartments. Flats in these popular areas come equipped with all the major amenities people seek in a neighbourhood.

AL NAHDA

The bustling community of Al Nahda has ranked as the top affordable area for renting apartments in Dubai. The mixed community is home to a plethora of high-rise buildings – ideal for singles and families. Moreover, the ideal location of Al Nahda provides easy access to Sharjah. Al Nahda is also among the popular areas to rent apartments in Dubai under AED 80k.

The average annual rent for apartments in Al Nahda has reached AED 43k in 2023.

• During 2023, upward trends were observed in the rental apartment segment in Al Nahda. The average yearly rent for the studio, 1 and 2-bed flats has risen by 20.83%, 9.38% and 10.87%, respectively.
• Tenants have paid a yearly rent of AED 29k for the studio, AED 35k for 1-bed and AED 51k for 2-bed flats.
• DLD has witnessed a spike of 7.16% for rental apartments in Al Nahda.

JUMEIRAH VILLAGE CIRCLE (JVC)

Enjoy breathtaking views of Dubai by renting an apartments in Jumeirah Village Circle

The serene community, Jumeirah Village Circle (JVC) has also remained a top-searched area. Renters can enjoy the numerous benefits of a gated community while residing in the community. Moreover, lush green landscapes and a village-like setup add more to the living experience. Apart from families, JVC also remains one of the top areas for students in Dubai.

The average yearly apartment rent has increased by 32% – the biggest rise in the affordable rental apartment category. The average annual rent for flats in JVC has jumped from AED 50k in 2022 to AED 66k in 2023.

• Annual rent for studio, 1 and 2-bed apartments in JVC has boosted by a notable 25%, 34% and 28.17%, respectively.
• The average yearly rent for apartments in JVC has increased. AED 45k for the studios, AED 67k for 1-bed and AED 91k for 2-bed apartments.
• DLD transactions for rental apartments in JVC have witnessed a notable 14.41% hike

BUR DUBAI

Offering a perfect blend of modernity and cultural heritage, Bur Dubai continues to reign supreme as a popular area for renting apartments. While the area captures the essence of old Dubai, a touch of modernity provides a unique living experience. Moreover, it is among the top areas to rent apartments in Dubai under AED 100k.

The average yearly rent for apartments in Bur Dubai has been recorded at AED 73k.

• Showcasing positive trends, the annual average rent for the studio, 1 and 2-bed flats has increased by 15.63%, 20.41% and 13.24%, respectively.
• The annual rental price for studio apartments averaged AED 37k. Meanwhile, the yearly rent averaged AED 59k and AED 77k for 1 and 2-bed apartments.
• As per DLD transactions, the average apartment rent in Bur Dubai has risen by 8.37%.

With the average price rising to AED 58k, Deira has attained the fourth rank as the most popular affordable area for renting apartments. Whereas, International City has attained the fifth spot on the list. The average yearly rent for flats in International City has spiked to AED 34k in 2023.

POPULAR AFFORDABLE AREAS IN 2023 TO RENT VILLAS IN DUBAI

DAMAC HILLS 2 (AKOYA BY DAMAC)

The vibrant community, DAMAC Hills 2 (Akoya by DAMAC) has ranked first as the most popular affordable area for renting villas in Dubai. Located on the outskirts of Dubai, the area offers a serene life away from the hustle and bustle of the city. Moreover, the community houses all facilities like schools, hospitals, malls and recreational spots.

Interestingly, DAMAC Hills 2 (Akoya by DAMAC) also ranks among the top areas to rent 3-bed villas under AED150k in Dubai. In 2023, the average rental price for villas has increased to AED 96k.

• For 3, 4 and 5-bed villas, the average yearly rental prices have increased by 31.75%, 41.89% and 34.31%, respectively.
• On average, tenants have paid a yearly rent of AED 115k for 3-bed villas. For 4-bed villas yearly rent stood at AED 138k while it was AED 155k for 5-bedroom townhouses.
• DLD transactions for rental villas in DAMAC Hills 2 (Akoya by DAMAC) have seen an uptick of 17.13%.

MIRDIF

Mirdif is a viable option for people looking for a family-friendly neighbourhood offering villas for rent in Dubai

The up-and-coming area, Mirdif has also remained a user favourite for renting villas in Dubai. The family-friendly neighbourhood boasts numerous amenities and offers a peaceful lifestyle in the emirate. Additionally, the community is home to several off-plan projects – opening more opportunities for renting and buying properties in the area.

With a slight increase, the yearly rental price for villas in Mirdif has increased to AED 131k.

• Annual rental prices for 3, 4 and 5-bed villas in Mirdif have increased by 25%, 17.95% and 17.42%, respectively.
• Compared to 2022, the average rental rate for 3-bed villas amounted to AED 115k. Meanwhile, the rent price for 4 and 5-bedroom villas was recorded at AED 138k and AED 155k.
• DLD transactions have portrayed a slight increase of 2.71% for rental villas in Mirdif.

DUBAI SOUTH

Called the ‘Centre of Tomorrow’, Dubai South has rightfully garnered immense attention. Dubai South houses eight sub-areas – providing a multitude of investment and living options. Furthermore, Al Maktoum International Airport and Dubai Expo 2020 in proximity make living in Dubai South all more appealing.

Villa rental prices in Dubai South have witnessed a decrease in 2023. Consequently, the average yearly rental price has decreased to AED 107k from AED 127k in 2022.

• Experiencing downward trends, the average yearly rental price for 2 and 3-bed villas has decreased by 9.43% and 6.16%, respectively.
• Renters paid an average rent of AED 96k for 3-bed villas. For 4-bed villas, the average yearly rent was priced at AED 137k.
• DLD transactions have also shown a decline of 3.04% in rental prices for villas in Dubai South.

Jumeirah Village Circle (JVC) and Dubailand have also emerged as popular choices for renting affordable villas in Dubai. The rental prices in the serene community of JVC have been recorded at AED 172k. Whereas, tenants paid an average annual rent of AED 191k for villas in Dubailand.

The increasing rental prices for different UAE property types portray positive signs for investors as returns become more lucrative. Also, the rising number of off-plan projects expands living options for people looking for a place in the futuristic city.

Disclaimer: The aforementioned popular areas and prices in this Dubai annual rental market report are based on search trends on the dubizzle platform. It is not a representation of the real estate transactions regulated in the emirates.