Discovery Gardens and International City could not make it to top five localities
Rise in working population in Dubai is keeping rentals steady or even leading to an increase in some areas.
“While prices adjust to inflationary gains in the past, there has been no stopping the upward growth of Dubai’s rental segment. This has primarily been a result of a rise in working population that is demanding rental units by the hundreds,” Bayut.com, a real estate portal, said in a statement sent to Emirates 24/7.
The top five localities, it said, for renters were Dubai Marina, Jumeirah Lakes Towers (JLT), Bur Dubai, Downtown Dubai and Dubai Silicon Oasis. Though Discovery Gardens and International City could not make it to the top five localities, they did register increases in search hits of 73 per cent and 71 per cent, respectively, in October compared to September.
In November 2015, Movesouq.com, a comparison site for moving and storage companies, put Dubai Marina (includes Jumeirah Beach Residence), Jumeirah Village, Downtown Dubai and DIFC Area, Dubailand and Emirates Hills (includes Lakes, Meadows and Springs) as the most sought after areas for renters.
According to Bayut, Dubai Marina registered an increase of 58 per cent in search hits followed by JLT and Bur Dubai with 55 per cent and 53 per cent increase in search hits, respectively. Downtown Dubai took the fourth spot with a 47 per cent increase with Silicon Oasis securing the fifth place with a 69 per cent growth.
The report said that overall average rental yields remained 5.5 per cent in October.
Apartment rents posted a month-on-month (mom) growth of 1.07 per cent. Studio apartments fetched an average price of Dh850,000 and an average annual rent of Dh62,000 (0.785 per cent mom increase). Average yields was 7.3 per cent.
Average price of one-bed apartments stood at Dh1.5 million as rents fell 1.79 per cent mom. Average annual rent was Dh101,000, while yields were 6.5 per cent. Two-bed apartments fetched an average price of Dh2.7 million, while average rents remained at Dh160,000, rising 1.92 per cent in October. Yield of the two-bed units were 5.8 per cent.
The report also revealed the top five areas most searched areas for buying. Dubai Marina, Jumeirah Lakes Towers (JLT), Downtown Dubai, Dubai Sports City (DSC) and Jumeirah Beach Residence (JBR) made it to the list.
“Now that the exaggerated news of (25,000) unit oversupply in Dubai’s market put to rest for good, developers are sure to get focused on finishing off projects at hand. Investors who watched the action from the side-lines for months will likely be encouraged to test the realty waters,” Bayut.com said.