Dubai: Even the more affordable residential locations in Dubai are starting to see rental increases, with Deira asking rates up 2 per cent in the July-September period compared to the second quarter, while Sports City values gained 5 per cent.
It is a similar situation at International City (a gain of 2 per cent quarter-on-quarter) and at Jumeirah Village (3 per cent), according to the latest report from the property services firm Asteco. The findings are broadly in tune with similar reports that suggest more locations in Dubai are seeing an end to the rental declines of the last two years.
What would it mean for someone wanting to lease a one-bedroom apartment in Deira? Asteco sets a range of Dh25,000-Dh52,500, depending on multiple factors such as the age and quality of the building, size of the units, etc.
Head down to Dubai Sports City and the same one-bed would be Dh27,500-Dh42,500. That locality still has more supply coming, which should mean rents remain under some check.
Steady rise?
The latest rental trends at Dubai Marina and Business Bay also reflect a steady increase in asking rates. A one-bedroom can fetch anywhere between Dh37,500-Dh100,000 – that’s after a 16 per cent increase year-on-year. Business Bay and the JLT cluster have seen 14 per cent and 13 per cent, respectively, with one-beds at Dh40,000-Dh75,000 in both.
"The start of the Expo 2020 has lifted demand and rental rates," Asteco says in the report. "However, the currently perceived positive market sentiment is believed to be short-term considering the significant amount of upcoming supply."
In the first nine months, 12,000 new apartments were delivered in Dubai, and another 8,000 could be ready for occupancy in the final three, with a majority being at the Azizi's Riviera community in MBR City.
quarter-on-quarter gain of 6% 14% in the 12 months to end September.
