Here are the areas in Dubai where there has been a drop in rental prices
Rental prices in Dubai alway seem to be a topic of discussion for many people in most rooms.
And rightfully so as over the past two years, Dubai’s rental market has seen significant increases, with some areas experiencing double-digit percentage growth. Reports indicate a surge in rental prices, with some communities witnessing increases of 20% to 30% year-over-year in 2023. This rise is attributed to a combination of factors, including increased demand, limited supply in certain areas, and a shift in tenant behavior towards renewing existing leases.
While rentals still remain high, last week brought some good news when we reported that the rental prices of properties in some areas of the city were dropping. This was despite an increase in demand for studios and one-bedroom apartments due to the crack down on illegal subletting and partitioning around the city.
Gulf News reported that in the last few months, rental prices around Dubai had either stayed the same or dropped slightly.
Discovery Gardens has seen a decline of 1% in the last two months. It is reported that rentals in International City have remained the same, even though it has been a popular spot for subletting.
However, Gulf News has also reported that recent leasing contracts for July in other areas have also seen a drop. The places that have seen some more favourable contracts are Jumeirah Village Circle (JVC) and Jumeirah Village Triangle (JVT) as well as in Arjan, Majan and The Greens. This has been the case since early July.
If these trends continue in the coming weeks, this will be the first time since 2020 that rentals have dropped in multiple locations in Dubai.
However, some Dubai rental prices are actually on the rise in areas like Dubai Silicon Oasis where new rent contracts show significant increases in the 5% to 10% range. Listings for one-bedroom apartments show rates of Dh70,000 and above.
Are you tired of renting and want to buy your own home in Dubai? Check out our guide for firs-time buyers: How to apply for the UAE first-time home buyer loan in Dubai
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