Dubai: Want more affordable choices for your next rented home? Then, heading down to Dubai South would be a serious option to consider with more supply being delivered and, with the ‘Expo City’ opening in October, getting a whole lot of prominence.
Two-bedroom apartments, and brand new ones at that, are being advertised for Dh40,000 and over currently at Dubai South. For the short term, the master-development will be the go-to choice for tenants who want to keep a tight check on their spending, and at the same time don’t want to compromise on living spaces and community amenities.
“The Expo City (which is the new branding for the Expo venue) will open its first phase in October, and with high-profile companies having their HQs,” said an estate agent. “That will feed sufficient demand for residential options, including villas, at Dubai South. Plus, in time, Expo City itself should have apartment buildings of its own.”
In its latest report, the property services firm Asteco emphasises Dubai South’s growing prominence in the rental space. “Secondary locations with good community facilities such as those surrounding the Expo 2020 site (along the E311 and E611 corridor) saw an increase in demand and performance, both for residential and commercial activities,” Asteco said on UAE property market’s Q2-22 performance. “In fact, the positive benefits of Expo 2020, including infrastructure upgrades and the repurposing of the site, will no doubt be felt across a wide range of sectors for years to come.”
Rents keep gaining
City-wide, rents keep on increasing, and every indication suggests that from September the pace could rise further. In the April-June period, average quarterly increases were about 4 per cent for apartments, and 6 per cent for villas. Compared to a year ago, these gains stand at 15- and 23 per cent, respectively, with individual locations such as Business Bay and Downtown recording spikes higher than the market average.
A two-bedroom in Business Bay would be between Dh70,00-Dh130,000 on average, according to Asteco, while those at Downtown command Dh90,000-Dh180,000. Year-on-year, both locations have seen rent hikes of more than 20 per cent.
Other affordable rental options
A two-bedroom at Discovery Gardens lists at Dh65,000-Dh70,000, up by 4-8 per cent, and Jumeirah Village options would be Dh50,000-Dh90,000 from a near 20 per cent increase year-on-year.
Even Deira, which has seen many buildings go through extensive makeovers or new ones opening, has in these 12 months to end June seen rents go up by 12 per cent, with average two-bedroom leases in a Dh40,000-Dh80,000 band.
On medium-term rental trends, “Asteco expects rental rates to remain elevated in the second-half of the year, but rental growth is expected to slow eventually as oversupply remains a lingering concern.” For now, though, rent gains are running red-hot.
Sharjah rents are rising again
Even when rents in Dubai and Abu Dhabi were starting to rise since April-May of last year, Sharjah’s actually saw some declines. According to market feedback, even newly completed buildings saw leases being signed for below par rates.
That, however, could be changing. In the Asteco report, Sharjah and Northern Emirates’ apartment rents made a marginal 1 per cent gain in the second quarter. Year-on-year, they are up by 4 per cent. In new buildings or those maintaining their quality, two-bedrooms in Sharjah are back at Dh50,000 and over levels.
For Sharjah landlords, there is even better news on the office leasing side. “Surprisingly, Sharjah office rental rates grew by 3 per cent on average over the last three months and 5 per cent annually, although net effective rents may have been influenced by additional incentives offered by landlords,” the report adds.
