Top 10 Dubai residential areas: Where is cheapest 1BR unit?
Residents are looking for communities offering stable or lower rents: Report
Jumeirah Park/Jumeirah Islands and Dubailand are the cheapest to rent one-bed units in Dubai’s top 10 neighbourhoods, says a new report.
The report, released by MoveSouq.com, a home services marketplace and propertyfinder.ae, a property portal, puts the average annual rents for one beds in the two areas at Dh63,000 and Dh64,000, respectively. Annual rents for two bed units in the respective areas at Dh80,000 and Dh95,000 per annum (pa), respectively.
An infographic, however, reveals that the maximum number of departures among the 10 trending neighbourhoods is taking place in the combined Dubai Marina/Jumeirah Beach Residence area where one- and two-bed units are leased for Dh116,000 and Dh184,000 pa.
The combined Downtown Dubai and DIFC area is also witnessing a larger outflow than inflow of residents. Annual average rentals for one beds are Dh139,000 and two beds Dh222,000 pa.
Rentals for one- and two-bed apartments in Jebel Ali Village, Gardens and Discovery Gardens stand at Dh81,000 and Dh85,000 pa, respectively, while one can lease them for Dh86,000 and Dh153,000 pa, respectively, in Jumeirah Village.
In Dubai’s Silicon Oasis and Academic City, rentals for one beds are at Dh78,000 pa and two beds at Dh120,000 pa, while average annual rents in Jumeirah Lakes Towers are Dh103,000 and Dh166,000, respectively.
In the combined Mirdif, Mushainah, Al Warqa and Al Mizahar area, which is a leasehold area (where non-Arab expats are not allowed to own properties) rents for one and two-bed units are Dh73,000 pa and Dh120,000 pa.
The two companies said in a joint statement that report (based on the infographic) was made using the moving activity data of first to third quarter 2015 and average annual rental transactions seen during 2015.
“Newly developed and growing neighborhoods of Jumeirah Village, Dubailand, Silicon Oasis and Academic City, and Jumeirah Park and Jumeirah Islands are experiencing a positive influx of people versus that of the established neighbourhoods that saw both high move-in rates and high move-out rates,” the companies said.
Though rents in the prime locations have seen a decrease of two to seven per cent in 2015, Dubai residents are seeking alternative solutions to find accommodation in new neighbourhoods where rents have been relatively stable and remain lower than in central districts, the report said.
In November 2015, real estate consultancy Cluttons said rents in Dubai remained stable in the third quarter 2015 and have fallen 3.2 per cent in the past one year. It added that most of the tenants were willing to absorb a five to 10 per cent rent increase instead of budgeting for high relocation costs despite there being landlords in the market who were willing to accept lower rents.
By Parag Deulgaonkar