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28 March 2024

How to save up to Dh32,000 on rent in old Dubai

Published
By Parag Deulgaonkar

Many of us in Dubai would like to stay in new apartments, but renting an older apartment could cut your expenses by up to 24 per cent, according to a comparison done by Emirates 24|7.

Average rent for one-bed apartment in older buildings of Karama, a popular community for Indians, Pakistanis and Filipinos, is currently at Dh65,000 per annum (pa), while a new one-bed unit could cost Dh80,000 pa onwards.

An old two-bed apartment could be leased for Dh82,000 pa compared to new one costing Dh100,000 pa onwards. As for a three beds, an older apartment could be leased for Dh102,500 pa, while a new one would cost at least Dh135,000 pa.

For Maria Santa, a Filipina, the first choice is to save money. Hence, she is staying in an older apartment with her family.

“We decided to take an older apartment as it was far cheaper than the new one. We decided to pay less rent than to move to a building that has a swimming pool and gym.”

Her annual saving on rent is almost Dh20,000.

Though old apartments could save rent, new apartments are also in demand.

wasl properties, the company, a subsidiary of wasl Asset Management Group, said it leased out 400 units, comprising studio and two-bedroom apartments, in nine buildings in wasl oasis II in Muhaisnah in just two weeks, proving there is demand for new apartments.

Zainab Mohammed, Chief Property Management & Marketing Officer at wasl properties, said: “A significant percentage of inquiries we receive are related to residential and commercial space in established areas such as Al Karama and Muhaisnah. We has garnered an excellent response from its initiative to provide quality, well designed residential communities in Dubai.”

Some renters do opine that older buildings are not well maintained and lack many amenities.

“If you are not budget conscious, then new apartments offer your various amenities such as gym, steam, sauna rooms, along with great maintenance service offered. I don’t mind giving premium for the services,” said Rani Singh, who lives in a new two-bed apartment.

Emirates 24|7 reported in January 2016 that rentals in Karama fell by up to 10 per cent in 2016 as per Dubai’s official rent index.

The decline in rentals ranged between 6.25 per cent and 10 per cent. Rates for studio units are down 10 per cent, with leases starting at Dh40,000 to Dh45,000 pa compared to Dh40,000 to Dh50,000 pa in 2015.

Rentals for one beds declined 6.25 per cent to 8.33 per cent with lease rates starting at Dh55,000 to Dh75,000 pa as against Dh60,000 to Dh80,000 pa. Rates for two beds range between Dh75,000 and Dh90,000 pa, down 6.25 per cent to 10 per cent, compared to Dh80,000-Dh100,000 pa in 2015.

Also read: Rents fall across Dubai's Karama, Oud Metha and Al Barsha areas