Dubai’s most iconic communities were the most coveted locations by tenants last year, in part driven by significantly more competitive rents. According to a report by Allsopp & Allsopp, the popularity of communities such as Dubai Marina, Downtown Dubai and Palm Jumeirah is another important factor for many tenants, especially new residents who often equate living in Dubai with these popular neighbourhoods.
“Dubai Marina, Downtown Dubai and the Palm Jumeirah will continue to be Dubai’s most sought-after communities among tenants,” Allsopp & Allsopp said in its report. “When expats move to the city, these pillar communities are already familiar and are what they had envisioned when they had pictured their life in the cosmopolitan city of Dubai.”
Palm Jumeirah and Dubai Marina are also great locations for tenants looking for bargain deals in the one-, two- and three-bedroom apartment category. According to Data Finder, apartments on the Palm Jumeirah were renting for a median price of Dh116,000 in January last year, but now the median price has dropped 12 per cent to Dh102,000.
Dubai Marina saw a 6 per cent drop from a median price of Dh75,000 in January last year to Dh70,000 this year.
According to Data Finder, other locations where rental prices of one-, two- and three-bedroom apartments have dropped by a good amount are Barsha Heights, which saw a 16 per cent decline from Dh72,000 in January last year to Dh60,000 this year, Jumeirah Village Circle (JVC), which had a 13 per cent drop from a median price of Dh47,000 to Dh41,000, and Motor City, which saw an 8 per cent decline from a median price of Dh60,000 to Dh55,000 during the same period.
Allsopp & Allsopp, which conducted its own research that included studio apartments, noted that Dubai Marina is popular to tenants new in Dubai. “Dubai Marina was the most popular area for 2019 with an average rental price of Dh98,405,” the company said. “This is the second consecutive year that it has come out on top. Dubai Marina is a vibrant community and is very popular with tenants who are new to Dubai. The community caters to everyone with studio apartments for singles, an array of properties for couples and large apartments and a few townhouses for families.
“Coming a very close second for rental popularity is Downtown Dubai where the average rental price for 2019 was Dh109,000. Downtown Dubai is the most-coveted location for tenants. The area is the epitome of Dubai with the world’s tallest tower, Burj Khalifa, Dubai Mall, Dubai Opera and a plethora of restaurants and cafes only a stone’s throw away.”
According to Data Finder, Reem’s median price dropped 14.5 per cent from Dh120,000 in January last year and to Dh102,500 today, The Springs saw prices go down 4 per cent from Dh125,000 to Dh120,000, while Emirates Hills had an even bigger decline of 39 per cent from Dh600,000 to Dh365,000. Mirdif had a 4 per cent drop from a median asking price of Dh115,000 to Dh110,000 and Town Square saw rents decline 16 per cent from Dh98,500 to Dh83,000.