Housing rents in Dubai continued to decline in 2019. According to reports, rents in the first half of 2019 dropped by 5 percent when compared to the same period last year.
“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 among renters,” Lynnette Abad, director of data and research at Property Finder told the media.
The current average median annual rent for Dubai apartments is Dh79, 650. When compared to the first half of 2017, Dubai apartment rents are now 21 percent more affordable.
This can be largely attributed to the amount of supply entering the Dubai market. In 2018, 33363 residential projects were completed in Dubai.
Rents for two-bedroom apartments in the city declined by 4.6 percent quarter-on-quarter. Rent for mid to high-end properties also dropped by 2.7 percent. Similarly, high-end or luxury properties’ rent in Dubai dropped by 2.1 percent.
Low-end two-bedroom apartment rents dropped by 3.7 percent quarter-on-quarter to reach around Dh64, 800 per year.
According to Thomas Mathew, assistant vice-president at Kamco Research, affordable areas in the city have higher yields as they include smaller one-bedroom apartments, where demand for renting remains relatively higher than high-end and mid-end areas.
Apartment communities that saw the biggest rent declines in the first six months of 2019 were Town Square, Motor City, Culture Village, and Arjan.
A recent survey has ranked Dubai as the third most affordable major global city for purchasing prime residential property. Savills’ World Cities Prime Residential Index showed that Dubai property prices have also dropped over the past five to ten years.