Top 5 residential areas for Dubai renters…

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Apartment rents drop 3 percent in Q1 2016

Residential apartment rents are three percent down in the first quarter of 2016 compared to the first quarter of 2015, according to real estate portal Bayut.

But a comparison done on a quarter-on-quarter basis by the portal reveals a different picture, showing average rentals had increased three percent with apartment rental yields remaining at 6 percent.

Studio apartment rents adjusted five percent with average annual rents being Dh60,000. One- and two-bed apartments both adjusted 4 percent with average rents being Dh98,000 and Dh154,000 per annum (pa), respectively. The 3- and 4-bed categories corrected by 4 percent and 3 percent, respectively, fetching Dh210,000 and Dh321,000 pa.

Almost 4,600 residential units were reported to be completed in the first quarter of 2016 and 10 percent of them came from projects delayed in 2015. Majority of these were located in Jumeirah Village Circle, Mohammed bin Rashid City, and Dubailand.

The top five localities for renting apartments during the period were Dubai Marina, Jumeirah Lake Towers, Bur Dubai, Downtown Dubai, and Business Bay.

The report said Dubai’s real estate market sailed stably through the first quarter.

“Not only did we see real estate developers carefully considering demand before supplying the market with new units, but we also saw an even distribution and movement of residents from the city center to suburbs,” it added.

Property consultancy JLL reported nearly 2,200 units were added to the Dubai residential market in the first quarter 2016 alone with rents dipping during the period compared to fourth quarter 2015.

The first quarter 2016 report revealed that rents for apartments were down by three percent quarter-on-quarter for apartments and one percent for villas. On the year-on-year (y-o-y) basis, the decline has been five percent for both the categories.

On the price front, it said the residential market was approaching the ‘bottom of its cycle,’ stating prices were down 10 percent year-on-year.

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3 thoughts on “Top 5 residential areas for Dubai renters…

  1. All these are happening because of different dynamics govern the two markets. While Dubai rents have been hit by regional economic stagnation, redundancies, weak job growth and modest supply growth, and also the Abu Dhabi housing market is feeling the pinch of weak public sector spend, low oil prices and new supply. Luxury rents are affected in both the Dubai and Abu Dhabi cities as companies are cutting housing budgets and other staff benefits. This is resulting in a lot of downsizing and demand for mid-income housing. Definitely smaller units such as studios and one-bedroom units will be in high demand, particularly different locations offer alternatives for tenants looking for larger residential types at more affordable rates.

  2. I think Dubai is one of the most beautiful country all over the world also i think real estate investment it top business in Dubai i found this website www,ugp.ae you can check out this site you will find a lot of different units

  3. Thank-you for your information, I agree with your points. this will really helpful for those looking to rent a villa house, here is some context: a square foot in Emirates Hills costs 243 percent more, and in Palm Jumeirah, 221 percent more, than the median asking price in Jumeirah Village Circle, the least expensive area in Dubai, says PropertyFinder Group.

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