For tenants, some of the most important criteria when choosing a house include proximity to schools, medical facilities, shopping areas and a neighbourhood that is lively and evolving. Dubai Silicon Oasis (DSO) is a self-sustained lifestyle community that ticks all the boxes. It offers round-the-clock security and a range of residential and lifestyle amenities, and also promotes smart and sustainable living.
Ozan Demir, director of operations and research at REIDIN — Real Estate Information, says demand continues to lag and rental prices across Dubai will continue to fall this year.
“Majority of areas in Dubai are going through a rental price decline phase due to an influx of new residential supply. In the apartment rental segment, rental prices in DSO have fallen by 4 per cent in the last three months and by 11 per cent in the last one year,” says Demir.
The rate of decline in the villa segment is lower when compared to the apartment segment. “In the villa rental segment, rental prices have fallen by 3 per cent in the last three months and by 8 per cent in the last one year,” says Demir.
The supply scene
Around 1,200 residential units have entered the DSO market this year. “As per announcements by developers, around 1,900 residential units are expected to enter the market by the end of 2020. However, based on historic trends, the actual materialisation rate is expected to be lower,” adds Demir. “Almost 90 per cent of completed residential units in Dubai this year have been apartments. These new affordable apartments have made the overall apartment segment more competitive,” he says.
According to REIDIN, rental prices are expected to remain under pressure until next year.
Lynnette Abad, director of research and data at Property Finder, says the median rental price is Dh48,000 per year for apartments and Dh155,000 for villas. “The most searched for unit in DSO is a one-bedroom apartment (44 per cent of searches), then studios, two-, three- and four-bedders in that order. About 26 per cent of searches are for properties up to Dh50,000, 15 per cent for up to Dh40,000, 13.3 per cent for up to Dh60,000, and 9 per cent for up to Dh70,000.”
The most searched sub-community is Silicon Gates, followed by Axis Residence, La Vista Residence, Cedre Villas, Binghatti views, Binghatti Apartments, Silicon Heights and Spring Oasis. “Users are searching for Silicon Gates for Dh50,000 and then for Dh40,000, Axis Residence for Dh50,000, La Vista Residence for Dh50,000, Cedre Villas for Dh150,000, Binghatti Views for Dh50,000 and Binghatti Apartments for Dh50,000,” says Abad.