You Need to Know: To Rent and Housing in the UAE, 2022
Here’s a complete guide to current rental rates in the emirate and a list of affordable areas:
The rental prices is being driven by a growing number of expatriate workers moving to the city, according to CBRE’s head of research Taimur Khan.
Average Annual Rents
- According to real estate adviser CBRE Group Inc, the average annual rent for a villa, or family home, in the emirate reached 268,758 dirhams last month after prices jumped 26% in the year through September.
- The Average apartment rents, meanwhile, soared 27% to 89,986 dirhams.
- Dubai rents that are increasing, the average sale price for villas rose 14%, while apartment prices rose 9% through September, according to CBRE.
- According to the CBRE Deira is the most affordable place to rent a villa, with an average rent of AED112,737, although this still represented a 3.5% increase. Upmarket Jumeirah, saw a climb of 4.8% (to AED500,635).
Housing Demands
Demand to buy homes and rent in Dubai is booming as the government’s handling of the pandemic and its liberal visa policies attract more foreign buyers and residents.
The Real Estate Market
The emirate’s real-estate market is benefitting from an influx of newcomers including bankers fleeing strict Covid restrictions in Asia, crypto investors and wealthy Russians escaping their sanctions-hit country after its invasion of Ukraine.
Housing Rentals
- Rentals for apartments on the city’s man-made island, Palm Jumeirah, reached the highest level at 231,397 dirhams on average.
- Annual villa rentals in the swanky neighborhood of Al Barari hit 946,270 dirhams.
- Notable premium locations for Dubai rents include Emirates Hills where the average rent is AED879,077 and at the opposite end of the spectrum is The Springs, where the average rent is a more affordable AED166,724.
- The rates are rising at the fastest pace ever and that’s making the gulf between core areas and secondary areas much more pronounced as CBRE’s Khan said.
Expensive Residential Areas To Rent
The most expensive residential areas are:
1. Palm Jumeirah
2. Downtown Dubai
3. Jumeirah
4. The Old Town
5. Dubai Marina
6. JBR
7. DIFC
8. The Views
9. Greens and Views
10. Business Bay
Cheapest Places To Rent An Apartment
The cheapest places to rent an apartment include:
1. Deira
2. Dubai Production City (IMPZ)
3. International City
4. Jumeirah Village Circle (JVC)
5. Dubai South
6. Dubai Investments Park (DIP)
7. Damac Hills 2
8. Dubai Land
9. Al Muhaisnah
10. Al Warsan
Dubai Rents: Palm Jumeirah Rent Costs Between $17k & $817k
- Price of renting an apartment in Dubai’s Palm Jumeirah can vary up to $800k a year, according to new research by Arabian Business.
- Lowest priced rental is now just $17k a year for a 548 square foot studio flat – $31 per square foot.
- Palm’s most expensive rental is $817k a year, for a four bedroom penthouse in Andaz Hotel.
- Penthouse covering only 3,133 square feet, it equates to $260 per square foot and another penthouse in the FIVE Hotel is priced at $477k for the year, but at only 780 square feet comes to a staggering $611 per square foot.
- Huge rental prices come as Dubai property sale prices rose in August according to new data from property consultancy CBRE.
Note: Average apartment prices were 7.7% higher annually in August while villa prices rose by 15.8% annually. The apartment prices were up 0.5% compared with July and villa prices rose by 0.3%
Rental Prices up 90% in Prime Locations
- The price of Dubai real estate in prime locations has shot up over the past year, rising as much as 88.8%, research from property consulting firm Knight Frank showed.
- Prime residential values in Dubai continue to strengthen, growing by 29% in Q3 alone, fuelled by a persistent deluge of UHNWI individuals who are zeroing in on Dubai’s premier districts, in search of second homes.
The above trend, marks a significant departure to the emirate’s two previous market cycles, where the overriding flavour of buyers was linked to buy-to-let or buy-to-flip purchases.
Sales
The prices have risen over 100% compared to the start of the pandemic in some locations, such as Palm Jumeirah and the sale marked:
- Ultra-prime houses, which refers to property priced at over $10 million.
- Have also hit new heights, with 152 registered so far this year, eclipsing 2021’s 93.
- Of these 152 deals, 93 took place in the third quarter of 2022 alone.
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