Rents drop in Dubai: Click to know which areas residents are moving to

Affordability remained the centre of discussions at the recently concluded Cityscape Global real estate exhibition in Dubai and the city’s rental market reflected just that in August 2016.

In terms of yields, Dubai’s apartment rental segment stayed relatively stable in August 2016, offering rental yields as high as 7.6 per cent in select categories. As per’s calculations, average rents across the emirate fell by 5 per cent in August compared to values in July 2016, while average yield was recorded at 5.6 per cent across all bed categories.

The average rent for studio apartments in Dubai fell 5 per cent to AED 54,000 in August 2016 from AED 57,000 in July 2016. Despite the drop, the apartment category offered the highest property yield at 7.6 per cent, still garnering abundant interest from investors. Rents for 1-bed units performed better, going up by 1 per cent to AED 93,000 on average in August, coupled with an attractive rental yield of 6.8 per cent. Two-bed units fetched owners AED 142,000 in August on average, declining a mere 2 per cent compared with the average rent in July. The average yield for the category remained 6 per cent.

Three-bed units commanded an average rent of AED 197,000 on average after falling 4 per cent from July’s AED 206,000. The rental yield of the category hovered around the 5.1 per cent mark. Rental value for the 4+ bed category stayed stable in August at AED 304,000, with the rental yield recorded at 5 per cent.

Top localities for renting apartments in Dubai (August 2016)

1.       Dubai Marina

2.       Jumeirah Lakes Towers (JLT)

3.       Bur Dubai

4.       Downtown Dubai

5.       Dubai Silicon Oasis

Top localities for buying apartments in Dubai (August 2016)

1.       Dubai Marina

2.       Jumeirah Lakes Towers (JLT)

3.       Downtown Dubai

4.       Business Bay

5.       Palm Jumeirah

Dubai Gazette