Bayut’s 2023 Dubai Rental Market Report

• Top Neighbourhoods
• Affordable Apartment Rentals
• Mid-Tier Apartment Rentals
• Luxury Apartment Rentals
• Affordable Villa Rentals
• Mid-Tier Villa Rentals
• Luxury Villa Rentals

The year 2023 has proven to be record-breaking for the Dubai real estate market. Our comprehensive Dubai annual rental market report for 2023 delves into the fluctuations of rental prices for both apartments and villas across key residential districts in the emirate, as observed on Bayut.

An analysis of property prices in Dubai for rental properties reveals a prevailing upward trend in affordable, mid-tier and luxury segments of the market:

• Rental costs for affordable properties have surged by 4% to 28%.
• The mid-tier segment of the market has reported upticks of up to 23%.
• Asking rents for high-end properties have generally increased by up to 31%.
• As per Dubai Transactions data, there were 818,583 rental transactions, valued at AED 67.9 billion, recorded during 2023.

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

TOP NEIGHBOURHOODS FOR RENTING VILLAS AND APARTMENTS IN 2023

The surge in rents in Dubai can be primarily attributed to the robust demand for rental properties driven by various factors. The city’s overall economic recovery and growth have attracted both investors and property-seekers, leading to a notable increase in population. This influx of residents, drawn to Dubai for work and residence, has significantly elevated the demand for rental properties, consequently exerting upward pressure on rental rates.

The combination of an increasingly attractive real estate market for investors, growing demand and limited supply has created conditions where rental prices are expected to experience significant increases. Additionally, the positive outlook on Dubai’s economic future, coupled with government initiatives, has instilled confidence in the real estate sector. Dubai’s appeal as both a global business hub and an attractive place to live continues to drive demand for rental properties, further influencing the upward trajectory of rental prices in the city.

As per our report on the Dubai rental property market in 2023, tenants seeking affordable accommodation showed a notable preference for family-friendly neighbourhoods, including:

• Al Nahda
• Deira
• Mirdif
• DAMAC Hills 2

While DAMAC Hills 2 and Mirdif are popular suburban locations, Al Nahda and Deira lie within city limits.

Prospective tenants with mid-range budgets have preferred a mix of new suburban and established communities, such as: 

• Jumeirah Village Circle
• Bur Dubai
• Arabian Ranches 3
• Reem

Tenants looking for upscale rental properties in Dubai were drawn to established neighbourhoods within city limits, such as:

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

Bayut’s Dubai annual rental market report for 2023 provides a detailed analysis of the rental price trends for villas and apartments in popular residential districts across the emirate. Let’s take a look.

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

AL NAHDA IS THE MOST POPULAR AREA TO RENT AFFORDABLE APARTMENTS IN DUBAI

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

POPULAR AREAS	TRANSACTION PRICE Avg. Yearly RentChange from 2022	STUDIO Avg. Yearly RentChange from 2022	1-BED Avg. Yearly RentChange from 2022	2-BED Avg. Yearly RentChange from 2022
Al Nahda	TRANSACTION PRICE Avg. Yearly RentChange from 2022 45,613 7.02%	STUDIO Avg. Yearly RentChange from 2022 30,000 16.7%	1-BED Avg. Yearly RentChange from 2022 39,000 9.73%	2-BED Avg. Yearly RentChange from 2022 51,000 8.39%
Deira	TRANSACTION PRICE Avg. Yearly RentChange from 2022 46,738 5.64%	STUDIO Avg. Yearly RentChange from 2022 29,000 0.00%	1-BED Avg. Yearly RentChange from 2022 45,000 4.52%	2-BED Avg. Yearly RentChange from 2022 68,000 8.33%
International City	TRANSACTION PRICE Avg. Yearly RentChange from 2022 32,329 10.7%	STUDIO Avg. Yearly RentChange from 2022 25,000 7.76%	1-BED Avg. Yearly RentChange from 2022 36,000 9.21%	2-BED Avg. Yearly RentChange from 2022 54,000 9.72%

According to the data collected for our Dubai real estate rental market report for 2023, Al Nahda emerged as the top choice for tenants seeking reasonably-priced apartments in Dubai:

• Rental apartments in Al Nahda recorded increases across the board, with the average price for studios increasing by 16.7%. The average annual rents for 1-bedroom and 2-bedroom configurations reported upticks of 9.73% and 8.39%, respectively.  

• According to the historical transactions for apartment rentals in Al Nahda, the average rental transaction value averaged AED 45.6k, reflecting an increase of 7.02%. 

• On average, tenants paid around AED 30k for studios, AED 39k for 1-bedroom apartments and AED 51k for 2-bedroom apartments.

In addition, tenants with budget considerations also showed an inclination for apartments in Deira:

• Rental costs for apartments in Deira increased by 4% to 8% for 1-bed and 2-bed units in 2023. The studio prices, however, remained unchanged. 

• As per the rent history for apartments in Deira, the average transaction value stood at AED 46.7k, representing a 5.64% increase from 2022. 

• The average rents in Deira during 2023 were recorded at AED 29k for studios, AED 45k for 1-bedroom apartments, and AED 68k for 2-bedroom units.

Tenants seeking budget-friendly apartments also showed interest in International City. Apartments in the area recorded upticks of 7% to 10%.

JUMEIRAH VILLAGE CIRCLE IS THE MOST POPULAR AREA TO RENT MID-TIER APARTMENTS IN DUBAI

RENTAL PRICES FOR MID-TIER APARTMENTS IN POPULAR DISTRICTS – DUBAI RENTAL MARKET REPORT FOR 2023

POPULAR AREAS	TRANSACTION PRICE Avg. Yearly RentChange from 2022	STUDIO Avg. Yearly RentChange from 2022	1-BED Avg. Yearly RentChange from 2022	2-BED Avg. Yearly RentChange from 2022
Jumeirah Village Circle	TRANSACTION PRICE Avg. Yearly RentChange from 2022 54,281 14.0%	STUDIO Avg. Yearly RentChange from 2022 45,000 15.0%	1-BED Avg. Yearly RentChange from 2022 67,000 19.3%	2-BED Avg. Yearly RentChange from 2022 94,000 17.2%
Bur Dubai	TRANSACTION PRICE Avg. Yearly RentChange from 2022 57,574 8.06%	STUDIO Avg. Yearly RentChange from 2022 38,000 11.5%	1-BED Avg. Yearly RentChange from 2022 60,000 12.9%	2-BED Avg. Yearly RentChange from 2022 78,000 9.68%
Dubai Silicon Oasis	TRANSACTION PRICE Avg. Yearly RentChange from 2022 45,976 10.7%	STUDIO Avg. Yearly RentChange from 2022 35,000 16.7%	1-BED Avg. Yearly RentChange from 2022 50,000 22.3%	2-BED Avg. Yearly RentChange from 2022 73,000 16.1%

As per the data compiled for our Dubai rental market report for 2023, Jumeirah Village Circle (JVC) remained the preferred choice for tenants in search of mid-tier apartments for rent in Dubai:

• Rental flats in JVC saw increases of 15% for studio flats, 19.3% for 1-bed and 17.2% for 2-bed configurations during 2023. 

• The rent history for apartments in JVC revealed that the average rental transaction value stood at AED 54.2k, reflecting a 14% increase. 

• On average, tenants paid around AED 45k for studios, AED 67k for 1-bedroom apartments, and AED 94k for 2-bedroom apartments.

Additionally, tenants with mid-tier budgets demonstrated a preference for apartments in Bur Dubai:

• Rental costs for apartments in Bur Dubai increased by 9% to 13% during 2023. 

• As per the rent transactions for apartments in Bur Dubai, the average transaction value stood at AED 57.6k, following an 8.06% increase from 2022. 

• The average rents in Bur Dubai during 2023 were recorded at AED 38k for studios, AED 60k for 1-bedroom apartments, and AED 78k for 2-bedroom units.

Tenants seeking affordable apartments also indicated an interest in Dubai Silicon Oasis. The average annual rent for apartments in the area increased by 16% to 22%.

DUBAI MARINA REMAINS THE TOP CHOICE FOR LUXURY APARTMENT RENTALS

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

POPULAR AREAS	TRANSACTION PRICE Avg. Yearly RentChange from 2022	1-BED Avg. Yearly RentChange from 2022	2-BED Avg. Yearly RentChange from 2022	3-BED Avg. Yearly RentChange from 2022
Dubai Marina	TRANSACTION PRICE Avg. Yearly RentChange from 2022 107,401 13.1%	1-BED Avg. Yearly RentChange from 2022 108,000 12.9%	2-BED Avg. Yearly RentChange from 2022 165,000 11.8%	3-BED Avg. Yearly RentChange from 2022 258,000 14.6%
Business Bay	TRANSACTION PRICE Avg. Yearly RentChange from 2022 89,086 11.0%	1-BED Avg. Yearly RentChange from 2022 92,000 14.8%	2-BED Avg. Yearly RentChange from 2022 144,000 13.1%	3-BED Avg. Yearly RentChange from 2022 211,000 20.9%
Downtown Dubai	TRANSACTION PRICE Avg. Yearly RentChange from 2022 134,661 14.7%	1-BED Avg. Yearly RentChange from 2022 134,000 11.7%	2-BED Avg. Yearly RentChange from 2022 237,000 4.05%	3-BED Avg. Yearly RentChange from 2022 411,000 14.3%

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

• The costs for expensive flats for rent in Dubai Marina increased by 12.9% for 1-bedroom flats, 11.8% for 2-bedroom units and 14.6% for 3-bedroom units. 

• The rent transactions for apartments in Dubai Marina reported a 13.1% increase in the average transaction value, which stood at AED 107.4k during 2023. 

• Throughout 2023, the average rents in Dubai Marina were recorded at AED 108k for 1-bed, AED 165k for 2-bed and AED 258k for 3-bed units.

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

• In 2023, prices for apartment rentals in Business Bay surged, recording increases of 14.8% for 1-bedroom units, 13.1% for 2-bedroom units and 20.9% for 3-bedroom units. 

• As per the rent history for apartments in Business Bay, the average rental transaction value increased by 11%, to average at AED 89.1k. 

• The average rents for apartments in Business Bay during 2023 were recorded at AED 92k for 1-bedroom, AED 144k for 2-bedroom and AED 211k for 3-bedroom units.

Bayut’s Dubai Rental Property Market Report for 2023 also highlights tenant interest in luxury flats in Downtown Dubai. Average rental costs for apartments in the area increased by 15%. 

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MIRDIF IS THE MOST SOUGHT-AFTER AREA FOR RENTING AFFORDABLE VILLAS IN DUBAI

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

POPULAR AREAS	TRANSACTION PRICE Avg. Yearly RentChange from 2022	3-BED Avg. Yearly RentChange from 2022	4-BED Avg. Yearly RentChange from 2022	5-BED Avg. Yearly RentChange from 2022
Mirdif	TRANSACTION PRICE Avg. Yearly RentChange from 2022 134,986 2.61%	3-BED Avg. Yearly RentChange from 2022 116,000 17.8%	4-BED Avg. Yearly RentChange from 2022 137,000 10.9%	5-BED Avg. Yearly RentChange from 2022 155,000 11.6%
DAMAC Hills 2	TRANSACTION PRICE Avg. Yearly RentChange from 2022 73,333 16.5%	3-BED Avg. Yearly RentChange from 2022 86,000 27.6%	4-BED Avg. Yearly RentChange from 2022 105,000 32.2%	5-BED Avg. Yearly RentChange from 2022 131,000 24.4%
Dubai South	TRANSACTION PRICE Avg. Yearly RentChange from 2022 112,656 -3.23%	3-BED Avg. Yearly RentChange from 2022 98,000 -5.53%	4-BED Avg. Yearly RentChange from 2022 138,000 -2.33%	5-BED Avg. Yearly RentChange from 2022 N/A  N/A

According to the data collected for our Dubai rental property market report 2023, tenants interested in affordable houses gravitated towards Mirdif:

• The rental costs for villas in Mirdif experienced increases of 17.8% for 3-bed villas. The average rents for 4-bedroom and 5-bedroom villa rentals in Mirdif increased by 10.9% and 11.6% in 2023. 

• As per the rent history for villas in Mirdif, the rental transaction value averaged at AED 135k in 2023, following an increase of 2.61%. 

• On average, tenants paid around AED 116k for 3-bedroom rental villas in Mirdif, AED 137k for 4-bedroom units and AED 155k for 5-bedroom houses in Mirdif.

Potential renters also showed interest in the affordable houses in DAMAC Hills 2:

• The annual rents for villas in DAMAC Hills 2 recorded upticks of 27.6% for 3-bedroom homes, 32.2% for 4-bedroom units and 24.4% for 5-bedroom villas during 2023. 

• The historical transactions for villa rental in DAMAC Hills 2 reported a transaction value of AED 73.3k, reflecting a 16.5% increase from 2022. 

• The average rentals for 3-bed villa rentals in DAMAC Hills 2 stood at AED 86k, while 4-bedroom houses were rented out for AED 105k and 5-bedroom villas were priced at an average of AED 131k.

Dubai rental trends observed on Bayut also revealed significant tenant interest in Dubai South villas. Rental costs for houses in Dubai South decreased by 3.23% during 2023.

JUMEIRAH VILLAGE CIRCLE IS THE MOST SOUGHT-AFTER AREA FOR RENTING MID-TIER VILLAS IN DUBAI

POPULAR AREAS TO RENT MID-TIER VILLAS – DUBAI ANNUAL RENTAL MARKET REPORT FOR 2023

POPULAR AREAS	TRANSACTION PRICE Avg. Yearly RentChange from 2022	3-BED Avg. Yearly RentChange from 2022	4-BED Avg. Yearly RentChange from 2022	5-BED Avg. Yearly RentChange from 2022
Jumeirah Village Circle	TRANSACTION PRICE Avg. Yearly RentChange from 2022 138,793 14.8%	3-BED Avg. Yearly RentChange from 2022 161,000 17.5%	4-BED Avg. Yearly RentChange from 2022 178,000 18.9%	5-BED Avg. Yearly RentChange from 2022 194,000 1.77%
Arabian Ranches 3	TRANSACTION PRICE Avg. Yearly RentChange from 2022 N/A  N/A	3-BED Avg. Yearly RentChange from 2022 145,000 0.08%	4-BED Avg. Yearly RentChange from 2022 196,000 0.47%	5-BED Avg. Yearly RentChange from 2022 N/A  N/A
Reem	TRANSACTION PRICE Avg. Yearly RentChange from 2022 129,105 16.3%	3-BED Avg. Yearly RentChange from 2022 163,000 19.6%	4-BED Avg. Yearly RentChange from 2022 203,000 20.4%	5-BED Avg. Yearly RentChange from 2022 210,000  N/A

The rental trends in Dubai observed on Bayut during 2023 revealed that tenants seeking mid-tier houses focused their attention on Jumeirah Village Circle:

• The asking rents for villas in Jumeirah Village Circle saw upticks of 17.5% for 3-bed villas, whereas the prices for 4-bedroom and 5-bedroom villa rentals in JVC increased by 18.9% and 1.77%, respectively. 

• The average rent transaction value in JVC, reported by Dubai Transactions, increased by 14.8%, to stand at AED 138.8k in 2023. 

• On average, tenants interested in villas in Jumeirah Village Circle paid around AED 161k for 3-bedroom units, AED 178k for 4-bedroom units, and AED 194k for 5-bedroom units during 2023.

Potential renters also showed a keenness for the mid-priced houses in Arabian Ranches 3:

• Rental costs for villas in Arabian Ranches 3 reported minor increases of under 1%. The area, still largely off-plan, recently handed over 3 and 4-bed units in the Joy, Sun and Spring sub-communities. 

• The average annual cost for 3-bed villa rentals in Arabian Ranches 3 stood at AED 145k, while 4-bedroom houses were rented out for AED 196k.

Apart from Jumeirah Village Circle and Arabian Ranches 3, the Dubai rental trends observed on Bayut showcased considerable tenant interest in Reem. Villas for rent in Reem reported price increases of up to 20.4%.

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 2023

POPULAR AREAS	TRANSACTION PRICE Avg. Yearly RentChange from 2022	4-BED Avg. Yearly RentChange from 2022	5-BED Avg. Yearly RentChange from 2022	6-BED Avg. Yearly RentChange from 2022
Dubai Hills Estate	TRANSACTION PRICE Avg. Yearly RentChange from 2022 277,879 26.4%	4-BED Avg. Yearly RentChange from 2022 324,000 12.0%	5-BED Avg. Yearly RentChange from 2022 378,000 -1.51%	6-BED Avg. Yearly RentChange from 2022 1,594,000 16.9%
Al Barsha	TRANSACTION PRICE Avg. Yearly RentChange from 2022 N/A  N/A	4-BED Avg. Yearly RentChange from 2022 329,000 37.9%	5-BED Avg. Yearly RentChange from 2022 381,000 15.6%	6-BED Avg. Yearly RentChange from 2022 476,000 7.20%
Jumeirah	TRANSACTION PRICE Avg. Yearly RentChange from 2022 N/A  N/A	4-BED Avg. Yearly RentChange from 2022 371,000 25.9%	5-BED Avg. Yearly RentChange from 2022 410,000 18.1%	6-BED Avg. Yearly RentChange from 2022 525,000 0.48%

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

• The average annual rents for 4-bedroom and 6-bedroom villas in Dubai Hills Estate increased by 12% and 16.9%, respectively. The 5-bedroom houses became more affordable by 1.51% in 2023. 

• According to the rental history for villas in Dubai Hills Estate, the average rental transaction value increased by 26.4%, averaging at AED 277.9k during 2023. 

• For tenants interested in renting villas in Dubai Hills Estate, the annual rents averaged at AED 324k for 4-bedroom units, AED 378k for 5-bedroom units and AED 1.59M for 6-bedroom villas.

Prospective tenants also showed interest in the luxury rental villas in Al Barsha:

• Rental costs for villas in Al Barsha increased by 7% to 38% across the board. The most notable price surge was recorded for 4-bedroom houses, due to a significant increase in demand for these properties.  

• The annual average rent for 4-bed villas in Al Barsha was recorded at AED 329k, whereas the 5 and 6-bedroom rental homes were priced at AED 381k and AED 476k, respectively. 

Additionally, potential tenants expressed a strong interest in luxury houses in Jumeirah. Rental costs for villas in the area reported upticks of up to 26%.

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That concludes our Dubai rental market report for 2023. For those interested in exploring real estate investment prospects, our 2023 Dubai Sales Market Report provides a detailed analysis of the most promising opportunities available.

Keep an eye on MyBayut as we will be revealing the Bayut property market reports for Abu Dhabi later this week.

Disclaimer: The average prices in the above Dubai rental property market report (MKTRPTYE2023) 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.