Bayut’s H1 2023 Dubai Rental Market Report

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

With the first half of 2023 wrapped up, the Dubai real estate market has continued on an impressive upward trajectory. Our H1 2023 Dubai rental market report analyses the rental price trends for apartments and villas observed in the emirate’s prominent residential districts, as advertised on Bayut.  

At a glance, the Dubai rental property prices show a general uptrend across the board in H1 2023:

• In the affordable segment, rental costs have increased by up to 50%. The only anomaly was Dubai South, where rental properties became more affordable by up to 4% in H1 2023.

• Luxury properties have recorded rental cost increases of up to 70%, with the most significant price hikes visible in high demand areas such as Dubai Hills Estate and DAMAC Hills.

To identify consumer search and rental trends in Dubai for this real estate rental market report, our data analysts have compared the average asking rents advertised on Bayut during H1 2023 (excluding room share) to those observed during H2 2022.

TOP NEIGHBOURHOODS FOR RENTING VILLAS AND APARTMENTS IN H1 2023

After another high-performing six months, the Dubai real estate market for rental properties has remained largely landlord-friendly during H1 2023. Rental property prices in Dubai’s popular districts have continued to appreciate, fuelled by the unprecedented demand from an influx of new residents. This increase in demand does not come as a surprise, given Dubai’s cemented position as one of the safest and most prosperous cities in the world.

Based on our H1 2023 Dubai rental market report, tenants in search of reasonably-priced housing gravitated towards family-friendly districts, such as:

• Jumeirah Village Circle (JVC)
• Bur Dubai
• DAMAC Hills 2
• Mirdif

While Bur Dubai is a district within city limits, Jumeirah Village Circle, DAMAC Hills 2 and Mirdif are popular suburbs.

Potential tenants looking for luxury property for rent in Dubai were mostly inclined towards the well-established districts within central city limits, such as: 

• Dubai Marina
• Business Bay
• Dubai Hills Estate
• Al Barsha

Bayut’s Dubai rental market report for H1 2023 provides an in-depth analysis of how rental property prices for villas and apartments fared across prominent residential districts. 

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 – BAYUT’S H1 2023 MARKET REPORT

POPULAR AREAS	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022	STUDIO Avg. Yearly RentChange from H2 2022	1-BED Avg. Yearly RentChange from H2 2022	2-BED Avg. Yearly RentChange from H2 2022
Jumeirah Village Circle	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 52,264 7.76%	STUDIO Avg. Yearly RentChange from H2 2022 44,000 17.2%	1-BED Avg. Yearly RentChange from H2 2022 63,000 16.9%	2-BED Avg. Yearly RentChange from H2 2022 88,000 15.4%
Bur Dubai	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 56,351 2.36%	STUDIO Avg. Yearly RentChange from H2 2022 37,000 9.70%	1-BED Avg. Yearly RentChange from H2 2022 58,000 8.83%	2-BED Avg. Yearly RentChange from H2 2022 76,000 6.05%
Al Nahda	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 44,409 1.79%	STUDIO Avg. Yearly RentChange from H2 2022 30,000 15.9%	1-BED Avg. Yearly RentChange from H2 2022 37,000 7.27%	2-BED Avg. Yearly RentChange from H2 2022 51,000 6.54%
Deira	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 46,020 2.10%	STUDIO Avg. Yearly RentChange from H2 2022 28,000 -5.61%	1-BED Avg. Yearly RentChange from H2 2022 45,000 4.19%	2-BED Avg. Yearly RentChange from H2 2022 65,000
International Ciity	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 31,279 4.40%	STUDIO Avg. Yearly RentChange from H2 2022 24,000 5.23%	1-BED Avg. Yearly RentChange from H2 2022 33,000 3.22%	2-BED Avg. Yearly RentChange from H2 2022 51,000 2.65%

As per the data collected for our Dubai rental market report for H1 2023, Jumeirah Village Circle (JVC) continued to be the top choice for tenants interested in affordable apartments for rent in Dubai:

• Prices for renting flats in JVC increased from between 15% and 18% in H1 2023. While studios recorded a 17.2% appreciation in rental costs, the 1 and 2-bed flats became more expensive by 16.9% and 15.4%, respectively.

• As per the DLD, the average rental transaction in Jumeirah Village Circle was valued at AED 52.2k, following an increase of 7.76%.

• On average, tenants paid AED 44k for studios, AED 63k for 1-bed and AED 88k for 2-bed flats.

Potential tenants in search of affordable accommodation also showed an inclination for apartments in Bur Dubai:

• Rental costs for apartments in Bur Dubai recorded upticks of between 6% and 10% in H1 2023.

• According to the DLD, the average transaction value for apartment rentals in Bur Dubai stood at AED 56.4k, registering an increase of 2.36% from H2 2022.

• To rent a studio in Bur Dubai during H1 2023, tenants paid an average of AED 37k. The 1-bed apartments were valued at an average rental value of AED 58k, whereas the 2-bed units were rented out for AED 76k per annum.

Tenants also showed interest in the affordable apartments available in:

• Al Nahda
• Deira 
• International City

The average asking rents in these districts recorded upticks of between 2% and 16% for most property types. The most significant hike was recorded in the rental prices of studio flats in Al Nahda, which can be attributed to significantly increased demand for properties in the area.

DUBAI MARINA REMAINS THE TOP CHOICE FOR LUXURY APARTMENT RENTALS

RENTAL PRICES IN DUBAI FOR LUXURY APARTMENTS – BAYUT’S H1 2023 PROPERTY MARKET REPORT FOR DUBAI

POPULAR AREAS	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022	1-BED Avg. Yearly RentChange from H2 2022	2-BED Avg. Yearly RentChange from H2 2022	3-BED Avg. Yearly RentChange from H2 2022
Dubai Marina	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 104,806 7.01%	1-BED Avg. Yearly RentChange from H2 2022 107,000 13.5%	2-BED Avg. Yearly RentChange from H2 2022 155,000 8.56%	3-BED Avg. Yearly RentChange from H2 2022 247,000 10.0%
Business Bay	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 86,679 4.84%	1-BED Avg. Yearly RentChange from H2 2022 90,000 11.3%	2-BED Avg. Yearly RentChange from H2 2022 141,000 13.5%	3-BED Avg. Yearly RentChange from H2 2022 195,000 14.5%
Downtown Dubai	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 133,942 11.8%	1-BED Avg. Yearly RentChange from H2 2022 134,000 12.9%	2-BED Avg. Yearly RentChange from H2 2022 246,000 6.13%	3-BED Avg. Yearly RentChange from H2 2022 422,000 16.9%
Dubai Hills Estate	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 99,639 10.8%	1-BED Avg. Yearly RentChange from H2 2022 97,000 31.5%	2-BED Avg. Yearly RentChange from H2 2022 162,000 31.7%	3-BED Avg. Yearly RentChange from H2 2022 239,000 14.7%
Palm Jumeirah	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 174,122 10.6%	1-BED Avg. Yearly RentChange from H2 2022 178,000 15.6%	2-BED Avg. Yearly RentChange from H2 2022 245,000 14.1%	3-BED Avg. Yearly RentChange from H2 2022 323,000 12.8%

As per the data collected for H1 2023 Bayut rental report for Dubai, Dubai Marina remained the top choice for upscale apartments:

• The rental costs for expensive flats in Dubai Marina have increased by 13.5% for 1-bed units, 8.56% for 2-beds and 10% for 3-bed units. The price hikes can be attributed to landlords capitalising on increased demand by listing properties at higher price points.

• The average rental transaction value as per the DLD also increased by 7.01% to stand at AED 104.8k.

• During H1 2023, the 1-bed apartments in Dubai Marina were priced at an average of AED 107k, whilst the cost for renting 2 and 3-bed units stood at AED 155k and AED 247k, respectively.

Tenants in search of luxury apartments in Dubai, also showed an inclination for properties in Business Bay:

• During H1 2023, the rental costs for Business Bay apartments increased by 11.3% for 1-bed, 13.5% for 2-bed and 14.5% for 3-bed units.

• The average rental transaction value as per the DLD, stood at AED 86.7k following an uptick of 4.84%.

• To rent apartments in Business Bay, tenants paid an average of AED 90k for 1-bed, AED 141k for 2-bed and AED 195k for 3-bed units in H1 2023.

Data collected for Bayut’s Dubai rental property market report H1 2023 also highlights tenant interest for luxury flats in:

• Downtown Dubai
• Dubai Hills Estate
• Palm Jumeirah

The asking rents in these areas increased by up to 32%. The most prominent uptick was noticed in Dubai Hills Estate, following the influx of higher priced inventory from Golf Suites and Park Heights.

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

POPULAR AREAS TO RENT VILLAS IN DUBAI – BAYUT’S H1 2023 DUBAI REAL ESTATE MARKET REPORT

POPULAR AREAS	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022	3-BED Avg. Yearly RentChange from H2 2022	4-BED Avg. Yearly RentChange from H2 2022	5-BED Avg. Yearly RentChange from H2 2022
DAMAC Hills 2	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 70,875 11.8%	3-BED Avg. Yearly RentChange from H2 2022 77,000 18.0%	4-BED Avg. Yearly RentChange from H2 2022 101,000 41.1%	5-BED Avg. Yearly RentChange from H2 2022 121,000 13.3%
Mirdif	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 133,350 0.90%	3-BED Avg. Yearly RentChange from H2 2022 112,000 12.4%	4-BED Avg. Yearly RentChange from H2 2022 127,000 2.56%	5-BED Avg. Yearly RentChange from H2 2022 141,000
Dubai South	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 114,148 0.74%	3-BED Avg. Yearly RentChange from H2 2022 94,000 -3.35%	4-BED Avg. Yearly RentChange from H2 2022 135,000 -1.08%	5-BED Avg. Yearly RentChange from H2 2022 N/A  N/A
Jumeirah Village Circle	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 134,373 7.50%	3-BED Avg. Yearly RentChange from H2 2022 141,000 5.99%	4-BED Avg. Yearly RentChange from H2 2022 168,000 9.07%	5-BED Avg. Yearly RentChange from H2 2022 183,000 -2.28%
Dubailand	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 143,419 12.2%	3-BED Avg. Yearly RentChange from H2 2022 136,000 22.4%	4-BED Avg. Yearly RentChange from H2 2022 207,000 49.4%	5-BED Avg. Yearly RentChange from H2 2022 278,000  N/A
Not available due to low/no historical inventory or influx of off-plan properties

Based on the H1 2023 rental trends in Dubai as observed on Bayut, renters in search of affordable houses focused on DAMAC Hills 2:

• The asking rents for villas in DAMAC Hills 2 increased by 18% for 3-bed and 13.3% for 5-bed units. The 4-bed houses in DAMAC Hills 2 became more expensive by 41.1%, following the influx of higher-priced units from Casablanca Boutique Villas, Acuna and Mulberry.

• The average rent transaction in DAMAC Hills 2, as reported by the DLD, increased by 11.8% to stand at AED 70.9k.

• On average, tenants interested in DAMAC Hills 2 villas paid AED 77k for 3-bed, AED 101k for 4-bed and AED 121k for 5-bed units in H1 2023.

Prospective renters also gravitated towards the reasonably-priced houses in Mirdif:

• The rental costs for villas in Mirdif recorded upticks of 12.4% for 3-bed homes and 2.56% for 4-bed units. The average rents for 5-bed villas remained unchanged in H1 2023.

• The DLD transaction value for villa rentals in Mirdif averaged at AED 133.3k, after an increase of 0.90% from H2 2022.

• The asking rent for 3-bed villas in Mirdif averaged at AED 112k per annum. The 4-bed houses were rented out for AED 127k, with the 5-bed villas being priced at an average of AED 141k.

Besides DAMAC Hills 2 and Mirdif, the Dubai rental trends observed on Bayut showed considerable tenant interested in the following areas:

• Dubai South
• Jumeirah Village Circle
• Dubailand

The average annual rental costs for villas in JVC and Dubailand generally increased from between 5% and 50%. The most noticeable increase was reported for average rental costs of 4-bed houses in Dubailand, following an influx of higher priced inventory from Al Habtoor Polo Resort and Club – The Residences. Average annual rents for villas in Dubai South decreased from between 1% and 4%.

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 H1 2023

POPULAR AREAS	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022	4-BED Avg. Yearly RentChange from H2 2022	5-BED Avg. Yearly RentChange from H2 2022	6-BED Avg. Yearly RentChange from H2 2022
Dubai Hills Estate	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 261,390 1.96%	4-BED Avg. Yearly RentChange from H2 2022 319,000 2.96%	5-BED Avg. Yearly RentChange from H2 2022 394,000 -1.53%	6-BED Avg. Yearly RentChange from H2 2022 1,773,000 25.9%
Al Barsha	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 N/A  N/A	4-BED Avg. Yearly RentChange from H2 2022 296,000 22.8%	5-BED Avg. Yearly RentChange from H2 2022 369,000 10.7%	6-BED Avg. Yearly RentChange from H2 2022 457,000 5.46%
Jumeirah	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 N/A  N/A	4-BED Avg. Yearly RentChange from H2 2022 346,000 10.9%	5-BED Avg. Yearly RentChange from H2 2022 395,000 9.67%	6-BED Avg. Yearly RentChange from H2 2022 435,000 -4.34%
Arabian Ranches 3	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 157,267  N/A	4-BED Avg. Yearly RentChange from H2 2022 202,000 0.40%	5-BED Avg. Yearly RentChange from H2 2022 N/A  N/A	6-BED Avg. Yearly RentChange from H2 2022 N/A  N/A
DAMAC Hills	TRANSACTION PRICE Avg. Yearly RentChange from H2 2022 193,622 8.83%	4-BED Avg. Yearly RentChange from H2 2022 322,000 11.5%	5-BED Avg. Yearly RentChange from H2 2022 446,000 11.7%	6-BED Avg. Yearly RentChange from H2 2022 896,000 69.6%
Not available due to low/no historical inventory or influx of off-plan properties

Based on the consumer search trends observed for our H1 2023 Dubai real estate market report, Dubai Hills Estate was the top choice for renters interested in luxury villas:

• The average annual rent for 4-bed villas in Dubai Hills Estate increased by 2.96%, whereas the 6-bed houses became more expensive by 25.9%, following a fresh influx of the inventory of listings from Golf Place and Fairway Vistas. The 5-bed villas, however, recorded a decrease of 1.53% in H1 2023.

• As per the DLD, the average rental transaction value in Dubai Hills Estate increased by 1.96% to stand at AED 261.3k in H1 2023.

• To rent villas in Dubai Hills Estate, tenants paid an average of AED 319k for 4-bed, AED 394k for 5-bed and AED 1.77M for 6-bed villas.

Potential tenants also showed interest in the luxury villas in Al Barsha:

• The rental costs for villas in Al Barsha increased across the board by up to 22.8%. These increases were largely consequent to the influx of inventory from Al Barsha 3.

• The annual average rent for villas in Al Barsha stood at AED 296k for 4-bed, AED 369k for 5-bed and AED 457k for 6-bed units.

Prospective tenants also showed a keenness for the luxury houses in:

• Jumeirah
• Arabian Ranches 3
• DAMAC Hills

Average annual rentals in these districts recorded upticks of up to 70%. The most significant increase was observed in the rental cost of 6-bed villas in DAMAC Hills, where the influx of inventory from Trump Estates and Veneto drove the prices upwards.

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Commenting on the findings, Haider Ali Khan, the CEO of Bayut and the Head of Dubizzle Group MENA said:

“Six months in, and we’re enjoying fabulous results. Prices are at a record high, traffic is steadily rising and transactions are also increasing month on month. A simple search of our new and improved Dubai Transactions tells you that the volume of sales transactions has gone up nearly 12% and value has increased by almost 20%. There is a lot of positive movement of wealth into the UAE as evidenced by the much talked about millionaire migration. Multiple reports have also confirmed that HNWIs from various parts of the world have earmarked a substantial budget towards property investments in the UAE.

We proactively launched our Chinese version in anticipation of this changing market dynamic and will follow it up with other innovations as well. We can also really see the supply vs demand dynamics playing out strongly in the rental market, with traditionally popular areas constantly being out-priced because of the supply crunch. The constant increase in rental prices has also prompted more people to take the plunge into homeownership, so the money they are allocating towards real estate ends up creating an asset in the long term. A strong focus on PropTech and transparency has also aided in creating a more positive outlook for the market overall, and we are excited to be a part of our city’s fantastic journey of growth.”

That brings us to the end of our H1 2023 Dubai rental market report. If you’re interested in real estate investment opportunities, our H1 2023 Dubai sales market report provides a detailed analysis of your best options.

The Bayut property market reports for Abu Dhabi will be released later this week so keep an eye on MyBayut.

Disclaimer: The average prices in the above Dubai rental property market report (MKTRPTH12023) 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.