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19 March 2024

Rents on rise but affordable Dubai freehold areas

Published
By Parag Deulgaonkar

Rents in Dubai are slowly rising, but property prices are down slightly in August, Reidin.com reveals.

Residential rental prices in the emirate rose by one per cent in August, registering a yearly increase of 21.6 per cent.

Apartment rents rose 1.19 per cent month-on-month (m-o-m) and 24.1 per cent year-on-year (y-o-y). Villa rental, on the other hand, rose by mere 0.03 per cent m-o-m and 9.4 per cent y-o-y.

In June and July, Reidin.com reported rents rising by 0.16 per cent and 0.80 per cent, respectively.

The pace of increase in rents and prices has slowed down in Dubai. However, experts believe that the population increase expected in the emirate will lead to a short supply of housing units in the coming few years.



Apartment owners in the newer freehold areas are likely to offer lower rents in order to attract tenants.

Emirates 24|7 reported on Wednesday that the Dubai’s official rent index revealed that rents of a studio apartment in Arjan, Dubailand, was between Dh25,000 and Dh30,000 per year.

Separately, Propertyfinder.ae, a property website, put International City, Discovery Gardens, Dubai Silicon Oasis, Dubai Investment Park and Dubailand as the least expensive locales for renting property.

Median rents in the third quarter 2014 for International City stood at Dh42,000 per year; Discovery Gardens Dh58,500 per year, Dubai Silicon Oasis Dh60,000 per year, while Dubai Investment Park and Dubailand were at Dh65,000 per year, respectively.

“Rents are experiencing a slowdown in certain areas. For instance, in Jumeirah Lake Towers, apartment rents fell by 4.6 per cent between June and August,” said Michael Lahyani, CEO, Propertyfinder.ae.

“Similarly, if you are looking to get a foot on the property ladder, house prices are likely to slow further in the coming months,” he added.