In the last couple of years, residential real estate rental rates in Dubai have been growing at an extremely active pace. The growth was especially pronounced in the last 6 months, when a huge number of foreign tourists, expats and investors, including from Russia and Ukraine, began to stay in the emirate.
Although the high cost of renting housing has increased in general throughout the emirate, both leaders and laggards have stood out in the trend. Since the first quarter of 2022, the average rental rates for apartments have increased by 4%, and villas — by 6%. The leaders were the elite areas of Palm Jumeirah, Dubai Marina and Dubai Hills.
They are followed by a number of suburban areas that have been gaining popularity among tenants in the last six months. Largely due to the wide offer of cheaper real estate than in the central areas of the emirate, while offering excellent living conditions and developed infrastructure, the development of which has been worked on for years by the government of Dubai.
On the other hand, we have several districts that have been deprived of the attention of buyers and investors this year, which has led to extremely modest growth rates of rental rates. It leaves these areas accessible to a wide range of buyers, but demonstrate a certain vagueness in the trajectory of their development. We are talking about Dubai South, Dubai Production City (IMPZ), Damac Hills 2 and International City.
Dubai South is located in the immediate vicinity of the former Expo-2020, now Expo City Dubai. The territory of Dubai South is still being built up, so it promises a high volume of new real estate receipts to the market in the coming years.
At the moment, a large stock of apartments for rent at affordable prices is available on the local market. A monthly studio rental will cost the tenant about $5,500, while a two-bedroom apartment will cost $15,000.
Similar prices are observed in Dubai Production City. Not the most developed area of the city, but conveniently located on an urban scale, for example, not far from Jumeirah Village Triangle and Dubai Sports City, which will help provide tenants with all the amenities missing in IMPZ. The area is being actively built up, but is still quite accessible.
Real estate in Damac Hills 2 is more expensive. This is an area that has gained its current popularity only in the last 2-3 years. While studios can be found in this area at a rate of $5,500, two and three-bedroom apartments can already cost $22,000.
In comparison with the districts. as mentioned above, Damac Hills 2 has a really developed infrastructure, although places for leisure are not yet widespread enough, especially in terms of the availability of restaurants and similar establishments. Nevertheless, there are already enough pharmacies, hypermarkets, food courts, even a floating cinema in the center of the district.
The most expensive of the four districts is International City. It is a well-developed family area and a residential area for students. Comfortable for doing business. International City is in a higher league than its rated neighbors, but still offers affordable rentals. You can easily find studios at a rate of $5,000 and two-bedroom apartments at a rate of $10,000.
