Bayut’s Q3 2023 Dubai Rental Market Report

• Top Neighbourhoods
• Affordable Apartment Rentals
• Luxury Apartment Rentals
• Affordable Villa Rentals
• Luxury Villa Rentals

Continuing on from the phenomenal performance of the real estate market over the course of 2023, the rental landscape’s upward momentum remained steady in Q3 2023. Our Dubai Q3 Rental Property Market Report 2023 examines the trends in rental prices for apartments and villas across prominent residential districts of the emirate, as observed on Bayut.

A look at the Dubai rental property prices for Q3 2023 shows a general uptrend in both the affordable and luxury segments of the market:

• Rental costs for budget-friendly properties have recorded upticks of 1% to 16%.

• Rents for luxury properties have generally increased by up to 13%, with certain areas with upscale villas reporting declines in rental costs of under 5%.

To identify consumer search and rental trends in Dubai Q3 rental real estate market report 2023, our data analysts have compared the average asking rents advertised on Bayut during Q3 2023 (excluding room share) to those observed during Q2 2023.

TOP NEIGHBOURHOODS FOR RENTING VILLAS AND APARTMENTS IN Q3 2023

Given Dubai’s ever-increasing popularity, the post-pandemic era saw throngs of people wanting to build a life in the UAE. This led Dubai’s rental market into a constant state of under-supply, primarily driven by a steady influx of new residents. However, recent handovers in popular areas like Downtown Dubai, Dubai Hills Estate and DAMAC Hills have slowed down this momentum.

The market dynamics have also altered with tenants opting for hotel apartments and co-living spaces to tackle increasing rents in the emirate. While landlords are still capitalising on the opportunity to set higher rental prices based on active demand – keeping rents on the lofty side, one can see some early signs of the Dubai rental market settling down.

According to our Dubai Q3 rental property market report 2023, tenants looking for budget-friendly accommodation were mostly keen on family-friendly neighbourhoods, such as:

• Jumeirah Village Circle (JVC)
• Al Nahda
• DAMAC Hills 2
• Mirdif

While Jumeirah Village Circle, DAMAC Hills 2 and Mirdif are prominent suburban districts, Al Nahda lies within city limits.

Prospective tenants in search of high-end property for rent in Dubai gravitated towards well-established neighbourhoods, such as: 

• Dubai Marina
• Business Bay
• Dubai Hills Estate
• Arabian Ranches

Arabian Ranches is a popular suburb, whereas Dubai Marina, Business Bay and Dubai Hills Estate lie within central city limits.

The Bayut rental market report for Dubai Q3 2023 offers a comprehensive analysis of the performance of villa and apartment rental prices in key residential neighbourhoods across the emirate. Let’s take a look.

We have segmented the popular areas for rental apartments and villas into ‘Affordable’ and ‘Luxury’ categories to provide a more tailored view of the Dubai rental market.

JUMEIRAH VILLAGE CIRCLE IS THE MOST POPULAR AREA TO RENT AFFORDABLE APARTMENTS IN DUBAI

RENTAL PRICES IN DUBAI FOR AFFORDABLE APARTMENTS IN POPULAR AREAS – DUBAI Q3 RENTAL PROPERTY MARKET REPORT 2023

POPULAR AREAS	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023	STUDIO Avg. Yearly RentChange from Q2 2023	1-BED Avg. Yearly RentChange from Q2 2023	2-BED Avg. Yearly RentChange from Q2 2023
Jumeirah Village Circle	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 55,767 2.06%	STUDIO Avg. Yearly RentChange from Q2 2023 45,000 0.00%	1-BED Avg. Yearly RentChange from Q2 2023 68,000 1.37%	2-BED Avg. Yearly RentChange from Q2 2023 93,000 1.96%
Al Nahda	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 46,651 3.47%	STUDIO Avg. Yearly RentChange from Q2 2023 32,000 7.03%	1-BED Avg. Yearly RentChange from Q2 2023 41,000 10.5%	2-BED Avg. Yearly RentChange from Q2 2023 53,000 4.25%
Bur Dubai	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 57,707 1.42%	STUDIO Avg. Yearly RentChange from Q2 2023 38,000 0.00%	1-BED Avg. Yearly RentChange from Q2 2023 62,000 6.28%	2-BED Avg. Yearly RentChange from Q2 2023 81,000 5.18%
Deira	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 47,477 -1.18%	STUDIO Avg. Yearly RentChange from Q2 2023 28,000 0.00%	1-BED Avg. Yearly RentChange from Q2 2023 45,000 0.00%	2-BED Avg. Yearly RentChange from Q2 2023 71,000 5.10%
International City	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 32,680 2.45%	STUDIO Avg. Yearly RentChange from Q2 2023 26,000 4.23%	1-BED Avg. Yearly RentChange from Q2 2023 36,000 4.53%	2-BED Avg. Yearly RentChange from Q2 2023 55,000 5.60%

Based on the data gathered for our Dubai Q3 rental real estate market report 2023, Jumeirah Village Circle (JVC) maintained its status as the top preference among tenants seeking affordable apartments for rent in Dubai:

• Rental flats in JVC experienced minor increases of under 2% for 1-bed and 2-bed configurations, during Q3 2023. Notably, the rental costs for studio apartments remained unchanged.

• According to the Dubai Land Department (DLD), the average rental transaction value in Jumeirah Village Circle averaged AED 55.8k, reflecting a 2.06% uptick.

• On average, tenants paid approximately AED 45k for studios, AED 68k for 1-bedroom apartments and AED 93k for 2-bedroom apartments.

Additionally, budget-conscious tenants also showed a preference for apartments in Al Nahda:

• Rental costs for apartments in Al Nahda increased by 4% to 11% during Q3 2023.

• As reported by the DLD, the average transaction value for apartment rentals in Al Nahda stood at AED 46.7k, following a 3.47% increase from Q2 2023.

• The average rents in Al Nahda during Q3 2023 were recorded at AED 32k for studios, AED 41k for 1-bedroom apartments and AED 53k for 2-bedroom units.

Tenants seeking affordable apartments also expressed interest in the following areas:

• Bur Dubai
• Deira 
• International City

These districts saw average asking rents rise by 4% to 7% for most bed types. The rental costs for studio and 1-bed flats in Deira and studio flats in Bur Dubai remained unchanged during Q3 2023, a significant change since these areas have seen prices increasing consistently over the last 18 months.

DUBAI MARINA REMAINS THE TOP CHOICE FOR LUXURY APARTMENT RENTALS

RENTAL PRICES IN DUBAI FOR LUXURY APARTMENTS – BAYUT’S DUBAI Q3 RENTAL REAL ESTATE MARKET REPORT 2023

POPULAR AREAS	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023	1-BED Avg. Yearly RentChange from Q2 2023	2-BED Avg. Yearly RentChange from Q2 2023	3-BED Avg. Yearly RentChange from Q2 2023
Dubai Marina	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 109,728 3.02%	1-BED Avg. Yearly RentChange from Q2 2023 106,000 -1.81%	2-BED Avg. Yearly RentChange from Q2 2023 169,000 3.24%	3-BED Avg. Yearly RentChange from Q2 2023 261,000 4.83%
Business Bay	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 90,692 2.45%	1-BED Avg. Yearly RentChange from Q2 2023 94,000 4.09%	2-BED Avg. Yearly RentChange from Q2 2023 147,000 3.06%	3-BED Avg. Yearly RentChange from Q2 2023 222,000 12.9%
Downtown Dubai	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 135,432 -0.05%	1-BED Avg. Yearly RentChange from Q2 2023 137,000 2.83%	2-BED Avg. Yearly RentChange from Q2 2023 245,000 -2.15%	3-BED Avg. Yearly RentChange from Q2 2023 415,000 -4.55%
Dubai Creek Harbour	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 115,219 -3.76%	1-BED Avg. Yearly RentChange from Q2 2023 102,000 3.89%	2-BED Avg. Yearly RentChange from Q2 2023 150,000 8.09%	3-BED Avg. Yearly RentChange from Q2 2023 222,000 6.11%
Palm Jumeirah	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 184,826 4.93%	1-BED Avg. Yearly RentChange from Q2 2023 181,000 0.77%	2-BED Avg. Yearly RentChange from Q2 2023 247,000 0.38%	3-BED Avg. Yearly RentChange from Q2 2023 328,000 0.45%

Based on the data compiled for Bayut’s Dubai Q3 rental property market report 2023, Dubai Marina remained the premier choice for upscale apartments:

• The costs for luxury flats for rent in Dubai Marina increased by 3.24% for 2-bedroom units and 4.83% for 3-bedroom units. On the contrary, the asking price for 1-bedroom rental flats in Dubai Marina decreased by 1.81%.

• The Dubai Land Department (DLD) reported a 3.02% increase in the average rental transaction value, which stood at AED 109.7k during Q3.

• Throughout Q3 2023, the average rents in Dubai Marina were recorded at AED 106k for 1-bed, AED 169k for 2-bed and AED 261k for 3-bed units.

Luxury apartment seekers in Dubai also showed a preference for properties in Business Bay:

• In Q3 2023, prices for apartment rentals in Business Bay surged, recording increases of 4.09% for 1-bedroom units, 3.06% for 2-bedroom units and 12.9% for 3-bedroom units.

• As per the DLD, the average rental transaction value in Business Bay increased by 2.45%, to average at AED 90.7k.

• The average rents for apartments in Business Bay during Q3 2023 were recorded at AED 94k for 1-bedroom, AED 147k for 2-bedroom and AED 222k for 3-bedroom units.

Bayut’s Dubai Rental Property Market Report for Q3 2023 also highlights tenant interest in luxury flats in the following areas:

• Downtown Dubai
• Dubai Creek Harbour
• Palm Jumeirah

These districts experienced rent upticks of up to 9%. The average rents for 2 and 3-bed apartments in Downtown Dubai, recorded decreases of up to 5%. This could be attributed to the recent property handovers in the area, which have resulted in a greater supply of larger units in the market.

---

---

DAMAC HILLS 2 IS THE MOST SOUGHT-AFTER AREA FOR RENTING AFFORDABLE VILLAS IN DUBAI

POPULAR AREAS TO RENT VILLAS IN DUBAI – BAYUT’S Q3 2023 DUBAI REAL ESTATE MARKET REPORT

POPULAR AREAS	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023	3-BED Avg. Yearly RentChange from Q2 2023	4-BED Avg. Yearly RentChange from Q2 2023	5-BED Avg. Yearly RentChange from Q2 2023
DAMAC Hills 2	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 73,819 1.91%	3-BED Avg. Yearly RentChange from Q2 2023 87,000 4.50%	4-BED Avg. Yearly RentChange from Q2 2023 108,000 0.00%	5-BED Avg. Yearly RentChange from Q2 2023 142,000  N/A
Mirdif	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 133,424 -1.28%	3-BED Avg. Yearly RentChange from Q2 2023 123,000 6.67%	4-BED Avg. Yearly RentChange from Q2 2023 143,000 3.79%	5-BED Avg. Yearly RentChange from Q2 2023 157,000 11.4%
Jumeirah Village Circle	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 145,028 8.33%	3-BED Avg. Yearly RentChange from Q2 2023 172,000 15.9%	4-BED Avg. Yearly RentChange from Q2 2023 181,000 6.38%	5-BED Avg. Yearly RentChange from Q2 2023 187,000 0.32%
Dubai South	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 124,299 11.6%	3-BED Avg. Yearly RentChange from Q2 2023 100,000 6.98%	4-BED Avg. Yearly RentChange from Q2 2023 144,000 1.95%	5-BED Avg. Yearly RentChange from Q2 2023 N/A  N/A
Reem	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 131,104 3.88%	3-BED Avg. Yearly RentChange from Q2 2023 168,000 3.13%	4-BED Avg. Yearly RentChange from Q2 2023 211,000 4.86%	5-BED Avg. Yearly RentChange from Q2 2023 220,000  N/A
Not available due to low/no historical inventory or influx of off-plan properties

Based on the rental trends in Dubai observed on Bayut for Q3 2023, tenants seeking affordable houses focused their attention on DAMAC Hills 2:

• The asking rents for villas in DAMAC Hills 2 saw moderate increases of 4.5% for 3-bed villas, whereas the prices for 4-bedroom villa rentals in DAMAC Hills 2 remained unchanged.

• The average rent transaction value in DAMAC Hills 2, reported by the Dubai Land Department (DLD), increased by 1.19%, standing at AED 73.8k in Q3 2023.

• On average, tenants interested in villas in DAMAC Hills 2 paid around AED 87k for 3-bedroom units, AED 108k for 4-bedroom units and AED 142k for 5-bedroom units during Q3 2023.

Prospective renters also found reasonably priced houses in Mirdif appealing:

• Rental costs for villas in Mirdif saw increases of 6.67% for 3-bedroom homes, 3.79% for 4-bedroom units and 11.4% for 5-bedroom villas during Q3 2023.

• The DLD reported a transaction value for villa rentals in Mirdif, averaging at AED 133.4k, reflecting a 1.28% decrease from Q2 2023.

• The average annual cost for 3-bed villa rentals in Mirdif stood at AED 123k, while 4-bedroom houses were rented out for AED 143k and 5-bedroom villas were priced at an average of AED 157k.

Apart from DAMAC Hills 2 and Mirdif, the Dubai rental trends observed on Bayut showcased considerable tenant interest in the following areas:

• Jumeirah Village Circle
• The Dubai South area
• Reem

The average annual rental costs for villas in these districts increased by up to 16%. The most significant increase was noted in the average rental costs of 3-bedroom houses in JVC, attributable to landlords listing their properties at higher price points to capitalise on the steady demand.

DUBAI HILLS ESTATE IS THE MOST POPULAR AREA FOR LUXURY VILLA RENTALS IN DUBAI

POPULAR COMMUNITIES TO RENT LUXURY HOUSES IN DUBAI – BAYUT’S DUBAI RENTAL PROPERTY MARKET REPORT Q3 2023

POPULAR AREAS	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023	4-BED Avg. Yearly RentChange from Q2 2023	5-BED Avg. Yearly RentChange from Q2 2023	6-BED Avg. Yearly RentChange from Q2 2023
Dubai Hills Estate	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 288,457 8.27%	4-BED Avg. Yearly RentChange from Q2 2023 310,000 -1.63%	5-BED Avg. Yearly RentChange from Q2 2023 393,000 -0.61%	6-BED Avg. Yearly RentChange from Q2 2023 1,936,000 N/A
Arabian Ranches 3	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 159,458  N/A	4-BED Avg. Yearly RentChange from Q2 2023 196,000 -1.55%	5-BED Avg. Yearly RentChange from Q2 2023 N/A  N/A	6-BED Avg. Yearly RentChange from Q2 2023 N/A  N/A
DAMAC Hills	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 203,979 7.20%	4-BED Avg. Yearly RentChange from Q2 2023 358,000 9.08%	5-BED Avg. Yearly RentChange from Q2 2023 414,000 -5.80%	6-BED Avg. Yearly RentChange from Q2 2023 539,000  N/A
Al Barsha	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 N/A  N/A	4-BED Avg. Yearly RentChange from Q2 2023 398,000 20.3%	5-BED Avg. Yearly RentChange from Q2 2023 396,000 -1.11%	6-BED Avg. Yearly RentChange from Q2 2023 527,000 2.81%
Jumeirah	TRANSACTION PRICE Avg. Yearly RentChange from Q2 2023 N/A  N/A	4-BED Avg. Yearly RentChange from Q2 2023 388,000 -6.81%	5-BED Avg. Yearly RentChange from Q2 2023 415,000 1.09%	6-BED Avg. Yearly RentChange from Q2 2023 435,000  N/A
Not available due to low/no historical inventory or influx of off-plan properties

---

Based on the consumer search trends analysed for our Dubai Q3 rental property market report 2023, Dubai Hills Estate emerged as the preferred choice for renters seeking luxury villas:

• The average annual rent for 4-bedroom villas in Dubai Hills Estate experienced a decrease of 1.63%, while 5-bedroom houses became more affordable by 0.61% in Q3 2023.

• According to data from the Dubai Land Department (DLD), the average rental transaction value in Dubai Hills Estate increased by 8.27%, averaging at AED 288.5k in Q3 2023.

• For tenants interested in renting villas in Dubai Hills Estate, the annual rents averaged at AED 310k for 4-bedroom units, AED 393k for 5-bedroom units and AED 1.94M for 6-bedroom villas.

Prospective tenants also showed interest in luxury villas in Arabian Ranches 3:

• Rental costs for villas in Arabian Ranches 3 recorded a decrease of 1.55%. The area, still largely off-plan, recently handed-over 3 and 4-bed units in Joy, Sun and Spring sub-communities.

• The average transaction value for rental villas in Arabian Ranches 3 was valued at AED 159.5k, by the DLD.

• The annual average rent for 4-bed villas in Arabian Ranches 3 was recorded at AED 196k during Q3 2023.

Additionally, potential tenants expressed a strong interest in luxury houses in the following areas:

• DAMAC Hills
• Al Barsha
• Jumeirah

Average annual rents in these districts saw notable increases of 2% to 20%. The most significant surge was observed in the rental costs of 4-bedroom villas in Al Barsha, where the limited supply pushed the price upwards given the increasing demand for centrally-located houses.

---

That wraps up our Dubai Q3 rental property market report 2023. For those keen on exploring real estate investment prospects, our Q3 2023 report on the Dubai sales market offers an in-depth analysis of the most promising opportunities available.

Stay tuned to MyBayut as we’ll be unveiling the Bayut property market reports for Abu Dhabi later this week.

Disclaimer: The average prices in the above Dubai rental property market report (MKTRPTQ32023) are based on ready properties advertised by real estate agencies on behalf of their clients on Bayut.com (excluding room share), and is not representative of actual real estate transactions conducted in Dubai, unless specified as based on DLD data.