New Property Finder Trends report says increased housing supply continue to put downward pressure on rents in Dubai
Average apartment rents in Dubai are 21 percent more affordable compared to two years ago.
While villas in the emirate witnessed a 3.8 percent dip in rents in the first half of this year compared to H2 2018.
According to the latest Property Finder Trends report this is a result of a glut in supply hitting the market – 19,449 new residential properties were completed in Dubai during H1 2019, while 2018 saw the overall completion of 33,363 residential units.
The current average median annual rent for Dubai apartments is AED79,650; for villas it is currently AED166,667.
“For the rental market, declines overall have seen a modest drop when comparing with prices from the last six months. The trend of being able to find bargains for everything from lower prices, an increased number of cheques as well as other incentives such as free utilities, are proving popular amongst renters,” said Lynnette Abad, director of data and research, Property Finder.
Apartment communities that saw the biggest rent declines in H1 2019 were Town Square (-10.1 percent), Motor City (-6.4 percent), Culture Village (-6.2 percent), Dubai Investment Park (-6.1 percent) and Arjan (-5.7 percent).
The only areas where rents registered marginal growth were City Walk and World Trade Centre, while Damac Hills, Dubai Silicon Oasis, Dubai South and The Views clocked minor rent declines in the first half of this year.
Villa/townhouse communities where rent reduced the most in H1 2019 were The Meadows (-18.1 percent), Green Community Motor City (-11.3 percent), Reem Mira (-10 percent), Al Furjan (-7.8 percent) and Damac Hills (-7.5 percent). Other villa communities, such as Emirates Hills, registered a healthy increase in rents (14.8 percent), International City (1.8 percent) and Jumeirah Park (1.2 percent).
Dubai Marina continues to be the most popular community to rent in the city, with around one-and-a-half times the demand as the next top searched community. Downtown Dubai, Palm Jumeirah, Jumeirah and Al Barsha completed the top five most popular communities.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.