How Dubai’s Property Rental Market Is Changing
Dubai’s property rental market has continued to see a fall in prices since 2014. This is mainly due to the ongoing expansion of the emirate and its communities into the outlying areas of the city while the efforts to develop the urban areas continue.
For instance, in 2014, the average annual rental price for a one-bedroom apartment in Dubai Marina was AED113,000. By the end of 2019, apartment rent prices in the area plummeted to AED58,000. A similar pattern can be observed for the Prime villas in Palm Jumeirah. A five-bedroom property on the island would have rented for an average of AED725,000 in 2014. By the end of last year, the average price fell to AED440,000. These prices were further hit by the global pandemic in the first half of 2020. As a result, we have witnessed a further steep decline in rental prices.
What This Means for Dubai’s Property Rental Market
The steep decline in rent rates and the fact that Dubai residents have been forced to spend more time at home, and even, in many cases, work from home, have resulted in two main catalysts for people moving apartments post lockdown. One is the need for more space and the other is the desire for a higher quality of living.
The demand for quality has never been as high as it is today. That being said, the most respected developers in the region, such as Emaar, Nakheel, and Meeras, have been consistent in providing unique projects that are helping Dubai evolve by offering vibrant, high-quality and exciting residences that you can call home. They have been establishing an emphasis on ‘’community-style living.” The aim of this new concept is to provide a comprehensive experience for owners and tenants with recreational and entertainment amenities for all types of families right where they live, without having to leave their communities.
There is a wide variety of communities available to rent in Dubai. The availability has undoubtedly elevated the emirate’s status as a robust family-friendly location for expats.
COVID-19 has affected all of us. The uncertainty it has caused in Dubai has made homeowners and tenants to re-think their lifestyle and their future requirements. People are moving! This is creating a market with high demand for and undersupply of established and popular developments. For that matter, in certain cases in some communities, such as Dubai Hills Estate, Arabian Ranches, Emirates Living, Downtown Dubai, Dubai Marina, and Palm Jumeirah, have even seen, a localised price increase.
We cannot be sure if this is a “real estate turnaround.” There may be more twists and turns in the road ahead. But, we do know that there are positives in the market as Dubai fights to move forward. You wouldn’t expect anything else from Dubai, would you?
Looking to Rent Houses in Dubai?
Meanwhile, are you looking to rent a house in Dubai? RERA-licensed brokers can help you find the best community that matches your budget and necessities. That being said, it is important to select agents with in-depth understanding of Dubai’s property rental market and the recent changes. At D&B Properties, we the right brokers that meet that requirement.