Dubai’s most affordable rents in 2023
Despite the average increase in rental prices, certain areas in old and new Dubai will continue to attract tenants because of low rents and high demand in the market following strong economic activity in the emirate.
According to Zoom Property Insights, the average rent of villas in Dubai crossed AED268,000 while apartment rents hit AED90,000 last year.
It is expected that a similar trend will continue this year, the Insights data says.
Dubai’s most affordable neighbourhoods
Ata Shobeiry, CEO of Zoom Property, believes that the high influx of expatriates moving to Dubai is a major factor that is driving the rental market.
“The number of people shifting their base in Dubai to seek employment and entrepreneurship along with an upscale lifestyle is rising with every passing day.
“This has led to demand for rental properties and a subsequent rise in the average rent. Still, there are some areas where tenants can find affordable housing options,” he said.
According to the Zoom Property Insights, International City is the most affordable area to rent properties in the city, with average rent falling between AED19,000 and AED55,000.
Dubai Silicon Oasis is another area renters prefer for low rents as the average rent here ranges from AED25,000 to AED52,000 and AED32,000 and AED68,000 for studios and one-bedroom apartments, respectively.
Bur Dubai, with an average rent of AED20,000 – AED60,000 for studios and AED36,000 – AED130,000 for 1-bed apartments is another popular area for affordable housing in Dubai.
Besides the aforementioned, Discovery Gardens (average rent between AED30,000 and AED60,000) and Sports City (AED26,000 and AED80,000) remain the preferred choices of tenants seeking affordable properties.
For rental villas, Deira ranks on top among the most affordable rents, with an average rent of AED114,175. It is followed by Jumeriah Village Triangle and Jumeirah Village Circle averaging AED149,598 and AED155,529, respectively, as the annual rent.
Lastly, Reem, with an average annual rent of AED157,414 is another popular community for affordable villas in Dubai.
“With rents further set to escalate in 2023, tenants will focus more on renewing contracts instead of signing new rental agreements. It’s the trend that was seen in 2022.
“However, affordable areas will get more traction, which will result in a moderate price increase in them as well,” Shobeiry concluded
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