Dubai's most affordable and expensive areas to rent an apartment
Jumeirah Village Circle (JVC), Al Nahda, Mirdif, Dubai Silicon Oasis and Akoya Oxygen were the most popular areas in Dubai to rent apartments in the affordable segment, said a new report released on Monday.
A study released by Zoom Property on Monday said JVC recorded an increase of 1.44 per cent, 1.29 per cent, and 4.76 per cent in the rental values of studios, 1-bedroom apartments and 2-bedroom apartments, respectively, in the third quarter of last year.
While rentals in the areas located close to the Expo 2020 site such as Dubai South also picked up pace because of the six-month-long global fair during the last quarter.
High demand for affordable villas was also noted in Mirdif followed by Akoya Oxygen and JVC. Reem and Dubai South also reported an increase in rental values.
“The return of foreign investors and efficient handling of the pandemic are some of the major reasons that led to the strong recovery in the rental market. The onset of Expo 2020 Dubai that’s attracting visitors from across the globe has also played a major role in boosting the property market,” said Ata Shobeiry, CEO at Zoom Property.
Real estate consultancy ValuStrat said 2021 performed better than forecasts as sales transactions broke previous records and capital values mostly reached pre-pandemic levels. It projected that 2022 will continue to see citywide price and rent increases, but at lower, healthier growth rates due to supportive economic reforms and an accelerated vaccine programme.
According to Zoom Property, Dubai Marina, Downtown, Jumeirah Beach Residence (JBR), Palm Jumeirah and Al Barsha were the most popular areas in the high-end category in 2021.
For the luxury villa category, most of the Dubai tenants preferred the Jumeirah area while Al Barsha, Umm Suqeim, Dubai Hills Estate, and Arabian Ranches remained other popular choices.
The study said that rents continued to increase for both apartments and villas last year, recording a three per cent rise in apartments and over 20 per cent in villas on average last year due to strong demand for larger houses after the outbreak of the Covid-19 pandemic. Rentals went up to 40 per cent in some of the popular areas such as Dubai Hills and Arabian Ranches due to high demand.