Highlights include:
- New communities like Dubai Hills Estate and Town Square will see more rental demand as more supply is handed over
- The current average median annual rent for Dubai apartments is AED 79,650
- Dubai apartment rents are 21 percent cheaper compared to two years ago
Dubai: In some good news for tenants, median advertised apartment rents in Dubai were 5 percent cheaper in H1 2019 compared to the same time last year, according to the ‘Property Finder Trends’ report released today by the leading portal. The current average median annual rent for Dubai apartments is AED 79,650. Compared to H1 2017, Dubai apartment rents are 21 percent more affordable, in further evidence of how the city is moving towards more affordability.
The sustained decline in city-wide rents also applies to villas and townhouses in Dubai. Rents for Dubai villas/townhouses dipped 3.8 percent compared to H2 2018; they are 8.6 percent cheaper compared to the same time last year, according to ‘Trends’ magazine. The current average median annual rent for Dubai villas is AED 166,667.
While some of this decline could be attributed to new affordable villa stock hitting the market and dragging down the median, established communities also saw a dip in rents. With 19,449 new residential properties completed in Dubai during H1 2019, it will be some time before supply levels are absorbed.
“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.
Continued rent declines can be attributed in large to the amount of supply entering the Dubai market. 2018 saw the overall completion of 33,363 residential units, according to Data Finder statistics.
Most popular areas
For those looking to rent in the first half of 2019, Dubai Marina, Downtown Dubai, the Palm Jumeirah, Jumeirah and Al Barsha made the top five, in the same fashion as last year. In line with previous years, due to Dubai Marina’s continued popularity, it pulled in around one and a half times the amount of demand as the next top searched community.
As more supply gets handed over in newer communities such as Town Square and Dubai Hills Estate, there is expected to be more rental demand in those areas as residents will spread out from the city centre looking for bargains and more bang for their buck.
Where is rent declining?
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. 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).
About Property Finder – www.propertyfinder.ae
Property Finder is the leading property portal in the MENA region and Turkey that facilitates the house-hunting journey for both buyers and renters.
Founded in 2007, the website has evolved over the years as the go-to platform for developers, real estate brokerages, and house hunters to make informed decisions on all things real estate.
A UAE-born start-up, Property Finder has branched out of the country’s shores and operates in a total of seven markets, including Qatar, Bahrain, Saudi Arabia, Lebanon, Egypt, and Morocco, and has a significant stake in the second-largest property portal in Turkey, which has over 6 million monthly visitors and more than 18,000 real estate agents.
US private equity firm General Atlantic led Property Finder’s latest round of investment of a total of $120 million in 2018. This is being used to hire further exceptional talent and investing in its technology and product capabilities.
The property portal employs over 450 employees globally, of which 204 people work out of its Dubai office, and generates over six million monthly visits as a Group.
In April 2019, Property Finder announced the acquisition of JRD Group, following an increased investment in Turkish portal Zingat.
In 2014, Property Finder acquired eSimsar.com, the top property portal in Saudi Arabia, while in 2013, the Group bought out realestate.com.lb, the number 1 property portal in Lebanon, and lastly, the acquisition of Selektimmo, a Moroccan portal, to pad out sarouty.ma, Property Finder’s Moroccan offering, in 2016.
For media enquiries, please contact
Anna Lucas Southgate
anna@propertyfinder.ae
+971 55 115 9971
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