Stock Dubai skyline property
It is at the top end of the market that rent increases are most apparent in Dubai. For anyone wanting to move into new homes, now is possibly the best time to lock in a rental they are comfortable with. Image Credit: Clint Egbert/Gulf News

Dubai: Apartment rents at some of Dubai’s popular communities increased by 8 per cent during the second quarter – but this increase could be short-lived.

That’s because more than 20,000 new apartments are scheduled for handover in the second-half of the year, adding to the nearly 9,000 that were delivered in the first six months, based on data from Asteco, the property services firm. This is why, the recent rental increase could soon face downward pressures.

The increases seem “inflated, particularly as new supply outperforms population growth,” said Asteco in its latest report. In these eight months, the Dubai property market has shown enough signs of a turnaround happening on property sales, while on rents, there were selective increases.

But some communities and destinations, such as the Downtown and the Palm, have been seeing sustained rental increases, with landlords getting close to their asking rates. But the new supply – and its ample if the 20,000 plus apartments do get ready - should be more than enough to keep rents from rising across the board.

In these last five years, rents in Dubai have dropped by an average of 20-25 per cent, before showing some stability at the start of 2021.

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Affordable hotpots

Of the locations that are still seeing drops, there is International City, where in the second quarter, rents are down 12 per cent from what they were in the same period last year. That means a two-bedroom would range between Dh35,000-Dh45,000, while a one-bed would be Dh20,000-Dh35,000.

Sports City apartment towers seem to be stabilising on rental side, with a two-bed at Dh37,500-Dh62,500, according to Asteco, while a one-bed would be the Dh27,500-Dh42,500 range.


The average rental increase in Dubai for villas during the second quarter. Unlike with apartments, villa rents could remain stuck in growth mode. In the second quarter, 1,500 villas were delivered

Single-digit gains

For tenants wanting slightly more upmarket neighbourhoods, the popular locations such as Business Bay, Dubai Marina, and JLT all have recorded rental increases, though in the 3-4 per cent range. A Marina two-bedroom would be in the Dh55,000 plus category and go all the way to Dh135,000 depending on the building, available floor space, and all the bells-and-whistles the landlord has thrown in.

If the tenant wants more of open spaces and less of vertical living, a home at the Greens would be Dh75,000-Dh115,000 for a two-bedroom. Greens across the board has had a 6 per cent increase year-on-year.