Bayut & dubizzle’s Dubai Rental Market Report for H1 2021

• Affordable Apartments
• Luxury Apartments
• Affordable Villas
• Luxury Villas

As we move into the second half of the year, it’s time for Bayut & dubizzle’s H1 2021 market report where we look at the prevailing trends in the Dubai real estate market. Our comprehensive report looks back at the housing market’s performance and analyses how rental prices in Dubai have fared in the first six months of 2021.

For our H1 Dubai rental market report, our data analysts have compared rental prices from the first six months of 2021 on Bayut and dubizzle (excluding room share) to those from the last six months of 2020.

In H1 2021, tenants searching for affordable housing have continued to prefer suburbs and older neighbourhoods, such as Jumeirah Village Circle (JVC), Al Nahda, Mirdif and Akoya Oxygen. On the other hand, tenants keen on renting luxury homes have shown a strong preference for established communities with integrated amenities and central locations, such as Dubai Marina, Downtown Dubai, Jumeirah and Al Barsha.

When it comes to rental price trends for the real estate market in the Bayut & dubizzle H1 Dubai Property Market Report 2021, there have been subtle differences in consumer interest for apartments and villas.

Affordable apartment communities have experienced decreases in rental prices under 10% across the board. This could be the result of landlords incentivising tenants with lower rental rates as the latter turn their attention towards more upscale homes, where rents have become more affordable in recent years. Thus, luxury apartment communities have observed an upswing in average rents over the last six months of 2021, experiencing increases between 2% to 13%.

On the other hand, rental villas in Dubai have observed an impressive growth in prices in H1 2021. While the affordable villa segment has largely remained stable, communities such as The Springs have recorded increases of up to 17%.

However, the luxury villa market has seen rental prices grow between 5% to 20%, particularly for bigger bed types, which could indicate consumer preferences shifting towards larger homes.

Bayut & dubizzle’s combined report compares the asking rents from H1 2021 to H2 2020, to provide the average rental prices in Dubai for apartments and villas. We have also further segregated the popular areas for rental apartments and villas into ‘Affordable’ and ‘Luxury’ to offer a more tailored view of the Dubai rental market.

Next, our Dubai rental market report offers a detailed analysis of average prices in popular residential neighbourhoods for apartments and villas.

JUMEIRAH VILLAGE CIRCLE (JVC) RANKS FIRST FOR AFFORDABLE RENTAL FLATS: Bayut & dubizzle’s H1 2021 Market Report

DUBAI PROPERTY PRICES FOR RENTING AFFORDABLE APARTMENTS

In H1 2021, Jumeirah Village Circle (JVC) has continued to be a favourite with budget-conscious tenants to rent apartments and penthouses in Dubai. This suburban community’s appeal lies in its large portfolio of properties and abundant amenities within the neighbourhood. According to trends observed on Bayut & dubizzle, the rental prices for flats in JVC have remained largely stable, recording minor decreases under 6% across the board. The average asking rents for JVC apartments have also stayed competitive, averaging at AED 27k for studios, AED 42k for 1-bed flats and AED 60k for 2-bed apartments.

Located on the Dubai-Sharjah border, Al Nahda has remained highly popular with tenants looking for reasonably priced apartments. According to our analysis of average rents in Dubai, studio flats in Al Nahda have seen a slight dip in prices, going from AED 26k to AED 21k. The 1-bed and 2-bed flats for rent in Al Nahda have average prices of AED 30k and AED 43k, respectively.

Dubai Silicon Oasis, Bur Dubai and Deira have also been the preferred locations for prospective tenants searching for affordable apartments. Our report on Dubai rental prices reveals that these communities and neighbourhoods have also registered minor decreases under 11% in average rents.

DIAMOND VIEWS IS THE MOST POPULAR COMMUNITY TO RENT FLATS IN JVC

According to Bayut & dubizzle’s Dubai property market report, Diamond Views has been the most popular with tenants in H1 2021. This residential community offers studios to 3-bedroom apartments in low-rise Mediterranean-style buildings. The prices to rent apartments in Diamond Views starts from AED 20k, as per current listings on Bayut.

Other notable communities for flats in JVC include Seasons Community, Emirates Garden, The Manhattan and Emirates Garden 2.

DUBAI MARINA HOLDS THE TOP POSITION FOR LUXURY APARTMENTS: Bayut & dubizzle H1 2021 Dubai Report

DUBAI RENTAL PRICES FOR UPSCALE APARTMENTS

Bayut & dubizzle’s H1 market report reveals that luxury apartment rental prices in Dubai have recovered in the first half of 2021. The most popular location for luxury apartments and penthouses, Dubai Marina, has seen an increase in average rents of up to 6.5%. While rents for 1-bed flats in Dubai Marina have remained stable at AED 61k, 2-bedroom apartments have gone up from AED 88k in H2 2020 to AED 94k in H1 2021 and 3-bedroom flats in Dubai Marina have risen from AED 131k to AED 134k.

Dubbed as ‘The Centre of Now’, Downtown Dubai has continued to appeal to tenants who prefer to live close to luxury malls, restaurants and attractions. According to our analysis of Dubai rental prices, this centrally-located neighbourhood has followed a similar trend to Dubai Marina. While average rents for 1 and 2-bed apartments for rent in Downtown Dubai have remained stable at AED 77k and AED 120k respectively, 3-bedroom flats have seen prices increase by nearly 10%, going from AED 196k to AED 215k in H1 2021.

There is a clear preference for waterfront communities among luxury neighbourhoods in Dubai, such as Palm Jumeirah and Jumeirah Beach Residence (JBR). The demand for these communities has also been reflected in the asking rents, which have recorded increases from 5% to 13%. The average price to rent an apartment in Palm Jumeirah has ranged from AED 108k to AED 164k in H1 2021, while the same in JBR has been between AED 74k to AED 124k, depending on the bed type. This can be attributed to the rising demand for easily accessible amenities such as parks, play areas and beaches.

MARINA DIAMONDS IS THE MOST PREFERRED COMMUNITY IN DUBAI MARINA

Located close to the Dubai Marina Walk, Marina Diamonds has been a favourite with prospective tenants interested in the waterfront district. The complex comprises six buildings and offers studio, 1 and 2-bedroom apartments for rent. As per Bayut’s current listings, the asking rents for flats in Marina Diamonds starts from AED 31k.

Other popular buildings in Dubai Marina include Sulafa Tower, Marina Pinnacle, DEC Towers and Marina View Tower.

MIRDIF CONTINUES TO HOLD TENANT INTEREST FOR AFFORDABLE VILLAS

DUBAI PROPERTY TRENDS FOR AFFORDABLE VILLAS FOR RENT: H1 Market Report from Bayut & dubizzle

According to Bayut & dubizzle’s real estate report for H1 2021, Mirdif has retained the top position for budget-friendly townhouses and villas for rent in Dubai. This well-established neighbourhood has only grown in popularity over the years, offering a plethora of family-friendly facilities. Thus, the rental prices for villas in Mirdif have also remained stable in the first half of the year, as per our analysis of Dubai house rents. The average asking rents for 3-bedroom villas in Mirdif have decreased from AED 89k to AED 84k while 5-bedroom villas from AED 119k to AED 112k. On the other hand, 4-bedroom villas for rent in Mirdif have seen average rents stay steady at AED 107k, as per our analysis of rental prices in Dubai.

Since its development, Akoya Oxygen has steadily risen in popularity with prospective tenants working with a tight budget. As a result, the rental costs for villas in Akoya Oxygen have experienced minimal fluctuations, according to our Dubai real estate analysis for 2021. 3-bedroom villas have seen average rents dip from AED 58k in H2 2020 to AED 51k in H1 2021, 4 and 5-bedroom homes have seen prices remain steady at AED 77k and AED 81k respectively. This could be the result of the increasing demand for bigger and more spacious homes, which has, in turn, made smaller bed types more affordable.

Similarly, other suburbs such as Jumeirah Village Circle and Dubai South have also seen prices remain unchanged in the first half of 2020. The popular, centrally-located community of The Springs, has seen an increase in rental prices, with 3-bedroom villas costing an average of AED 144k in H1 2021, as opposed to AED 123k in H2 2020.

UPTOWN MIRDIF IS THE MOST-SEARCHED-FOR COMMUNITY TO RENT VILLAS IN MIRDIF

Tenants have shown a clear preference for the Uptown Mirdif community when it comes to renting villas in Mirdif, according to Bayut & dubizzle’s property market analysis in Dubai. Uptown Mirdif has a large portfolio of villas that range between 2- to 5-bedroom units and has starting rents of AED 50k.

On the other hand, Shorooq Mirdif offers cosy 2-bedroom villas for rent, starting from AED 73k.

JUMEIRAH RANKS FIRST FOR RENTING LUXURY HOUSES IN DUBAI

RENTAL PRICES IN DUBAI FOR UPSCALE HOMES

As per Bayut & dubizzle’s Dubai property market report for H1 2021, Jumeirah has remained the firm favourite for luxury villa and townhouse rentals in the emirate. Known for its malls, restaurants and proximity to the beach, villas in Jumeirah attract a mix of expats and locals. Our analysis of rental trends in Jumeirah reveals that average prices for 4 and 5-bedroom houses in Jumeirah have remained steady at AED 173k and AED 224k respectively, while 6-bedroom villas have seen average rents increase from AED 282k to AED 318k.

Other well-established neighbourhoods that offer easily accessible amenities such as schools, supermarkets and clinics, such as Al Barsha and Umm Suqeim, have continued to generate interest from prospective tenants. Similar to the trends observed in Jumeirah, Al Barsha has seen an uptick in average asking rents for bigger bed-types, increasing from AED 207k to AED 217k for 5-bed homes and AED 257k to AED 312k for 6-bed houses.

Gated communities including Dubai Hills Estate and Arabian Ranches have also been popular choices in the rental market in H1 2021. While rental property prices in Dubai Hills have remained steady, Arabian Ranches has experienced increases in average rents of up to 18%, in line with prevailing trends. This impressive growth in rental costs could be attributed to landlords capitalising on the shift in demand towards bigger homes.

JUMEIRAH 1 IS THE TOP CHOICE FOR RENTAL HOMES IN JUMEIRAH

In the first half of 2021, Jumeirah 1 has garnered the most attention for potential tenants looking to rent a villa in Jumeirah. Aside from a large portfolio of spacious, independent homes, Jumeirah 1 offers easy access to Mercato Mall, La Mer and City Walk. Tenants can expect to pay a minimum of AED 110k for a rental villa in Jumeirah 1, as per current listings on Bayut. Other sub-communities where tenants can find family-friendly houses include Jumeirah 3 and Jumeirah 2.

Haider Ali Khan, CEO of Bayut & dubizzle and Head of EMPG MENA, also commented:

“Since the beginning of 2021, there have been growing signs that the Dubai property market is on a steady upward curve, with prices appreciating especially in the sales segment. Most real estate agencies have also confirmed this by sharing the outstanding results of their H1 performance. In fact, if we look at the transactional data from the Dubai Land Department, it’s clear that interest and conversion are both high, with the percentage of transactions going up by an impressive 200% in May 2021 compared to the same period last year.”

“The positive performance of the Dubai property sector has also been reflected on both of our portals with a combined traffic of over 28M sessions. High COVID vaccination rates, investor-friendly reforms and an economy that’s been able to quickly adapt and get back on its feet post the lockdown will continue to drive the growth of the Dubai real estate market.”

That concludes our report on rental prices in Dubai for H1 2021! While most residential neighbourhoods have experienced stability in prices, luxury districts have recorded impressive growth in the first half of the year, particularly for larger bed types.

Prospective buyers and investors can also take a look at Bayut & dubizzle’s Dubai property sale market report for H1 2021. Learn more about popular areas to buy apartments and villas as well as the evolution of price trends in these neighbourhoods.

We will also soon be releasing our H1 2021 real estate market reports for Abu Dhabi, Sharjah and Ajman. Stay tuned to MyBayut to find out how these property markets have fared in the first half of 2021.

You can also catch up on highlights from UAE real estate news in June 2021. Learn more about the latest project launches and updates in different emirates.

Disclaimer: The above report is based on Dubai property prices advertised by real estate agencies on behalf of their clients on Bayut.com & dubizzle property (excluding room share), and not representative of actual real estate transactions conducted in Dubai.