By Staff writer
Where you can pay AED30,000 for a one-bedroom apartment
Dubai’s cheapest and most expensive rental areas have been revealed in new data from a classified website.
The city’s costliest spots to rent apartments include the Burj Khalifa, Palm Jumeirah, Dubai International Financial Centre (DIFC), Jumeirah Beach Residence, Dubai Marina and Business Bay.
And its most affordable apartments are in Al Awir, Dubai Outsource Zone, International City, Abu Hail, Al Ras, Naif, International Media Production Zone (IMPZ) and the Gardens, reported Khaleej Times.
A one-bedroom apartment in the Burj Khalifa costs up to AED170,000 ($46,000), said the report, quoting data from EZHeights.com. On the Palm, a similar apartment would cost from up to AED155,000, while in DIFC it would rent for up to AED130,000.
In contrast, a studio apartment in Al Awir would cost up to AED30,000, up to AED30,000 in Outsource Zone and up to AED35,000 in International City, said the report.
The Remraam community saw steepest decline in apartment rents in Q2 at more than three per cent. After witnessing a flat market last quarter, apartments recorded nearly a one percent decline in rents, according to Chestertons' Q2 report. However, with most tenants still paying below-market rents, landlords can still command an increase in rents as per the Real Estate Regulatory Agency's rent calculator.
"Although city-wide residential rents have fallen by six per cent since the peak, numerous tenants are still living on legacy rentals," said Hussain Alladin, head of research at GCP Properties. “Due to the rental bands enforced by the Rera, landlords are entitled for a rental increase, aligning the legacy rents with market rates.
Moreover, due to the slowdown of delivery of units in the pipeline, rents have not fallen, despite expectations. The current renewal cycle for August/September which coincides with the school year will determine if there is any softness in rents. But thus far, there has been hardly any impact on rents despite predictions on the part of most market consultants.”
But Declan McNaughton, Chestertons’ UAE managing director, said: "For sure, some families are downsizing. In general, landlords must come to terms with the fact that rents have declined and need to be realistic with their asking prices.
“It is better to have their property rented at a lower level for 12 months than waiting for a higher price that cannot be realised and ultimately lose out on monthly rental income."