Affordable areas in Dubai witnessed the highest rent growth over the past year. This surge was driven by strong demand from tenants seeking budget-friendly options amidst a general rise in rental prices.
These areas not only attracted tenants but also offered robust rental yields for landlords and investors. Easy access to key locations such as Deira and Bur Dubai via Dubai Metro and other public transport options further enhanced the appeal of these affordable communities, making them ideal for residents on a limited budget.
Rent Growth in Affordable Areas
According to Bayut:
Rents for affordable apartments increased by up to 48%.
The highest growth was reported for two-bedroom apartments in Deira.
Other popular areas included Bur Dubai for apartments and Damac Hills 2 and Mirdif for villas.
Villa rents also saw significant growth, with affordable options rising by up to 44%.
Population Growth and Rising Demand
With Dubai’s expatriate population expected to exceed 4 million by 2025, demand for housing continues to rise. This trend presents exciting opportunities for the real estate sector, as Dubai increasingly positions itself as a global hub for living and investment.
Rent Growth Across Market Segments
1. Mid-range Apartments:
Rent increased by up to 41%.
Top areas: Jumeirah Village Circle (JVC) and Business Bay.
2. Mid-range Villas:
Rent rose by up to 45%, especially in Town Square.
3. Luxury Properties:
Villa rents surged by up to 60%, particularly for large six-bedroom units in Jumeirah.
Key locations: Dubai Marina, Downtown Dubai, and Dubai Hills Estate.
Return on Investment (ROI)
According to Bayut:
Affordable Apartments:
Areas like Dubai Investment Park (DIP) and Discovery Gardens offered rental yields between 9% and 11%.
Affordable Villas:
Communities such as Damac Hills 2 and International City provided yields above 6%.
Luxury Properties:
Locations like Al Barari and Tilal Al Ghaf recorded yields exceeding 6%.
Conclusion:
Dubai’s real estate market continues to offer attractive opportunities for both tenants and investors, with consistent rent growth and strong ROI across various segments. Whether in affordable or luxury areas, the city provides diverse options to suit different budgets and investment goals.
