Bayut’s Q1 2023 Dubai Rental Market Report
- Top Neighbourhoods
- Affordable Apartment Rentals
- Luxury Apartment Rentals
- Affordable Villa Rentals
- Luxury Villa Rentals
Continuing its boom from last year, the Dubai real estate market has recorded an impressive first three months in 2023. Our Q1 2023 Dubai rental market report analyses the evolution of rental prices for apartments and villas in the emirate’s most popular residential areas, as advertised on Bayut.
A quick look at the Dubai rental property prices shows significant increases across the board in Q1 2023:
- Rental costs have experienced upticks of up to 24% in the affordable segment. The only anomaly was Dubailand where landlords have listed their properties for rental values up to 58.2% higher than Q4 2022.
- Properties in the luxury sector recorded upticks of up to 88% in advertised rental costs, with the most significant increases visible in areas with high demand and limited inventory, such as Dubai Hills Estate and Downtown Dubai.
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 Q1 2023 (excluding room share) to the Dubai rent trends observed during Q4 2022.
TOP NEIGHBOURHOODS FOR RENTING VILLAS AND APARTMENTS IN Q1 2023
Rental property prices in Dubai have been on an upward trajectory since last year. Dubai offers an impressive quality of life, a safe environment in which to raise a family, a favourable climate, and excellent career opportunities. All of these factors combine to make it one of the world’s best places to live, which ensures a constant flow of new residents, leading to a significant demand for varied residential options.
As per our Q1 2023 Dubai real estate market report for rental properties, tenants in search of affordable accommodation showed a keenness for family-friendly neighbourhoods, such as:
- Jumeirah Village Circle (JVC)
- Bur Dubai
- DAMAC Hills 2
- Mirdif
Out of these areas, Bur Dubai lies within city limits, whereas Jumeirah Village Circle, DAMAC Hills 2 and Mirdif are popular suburban districts.
Tenants in search of luxury villas and apartments mostly gravitated towards the well-established neighbourhoods within central city limits, such as:
- Dubai Marina
- Business Bay
- Umm Suqeim
- Jumeirah
To get a better idea of how rental property prices fared across popular residential districts for villas and apartments, let’s look at Bayut’s Dubai rental market report for Q1 2023.
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 Q1 2023 MARKET REPORT
POPULAR AREAS | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022 | STUDIO Avg. Yearly RentChange from Q4 2022 | 1-BED Avg. Yearly RentChange from Q4 2022 | 2-BED Avg. Yearly RentChange from Q4 2022 |
|---|---|---|---|---|
| Jumeirah Village Circle (JVC) | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| STUDIO Avg. Yearly RentChange from Q4 2022
| 1-BED Avg. Yearly RentChange from Q4 2022
| 2-BED Avg. Yearly RentChange from Q4 2022
|
| Bur Dubai | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| STUDIO Avg. Yearly RentChange from Q4 2022
| 1-BED Avg. Yearly RentChange from Q4 2022
| 2-BED Avg. Yearly RentChange from Q4 2022
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| Deira | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| STUDIO Avg. Yearly RentChange from Q4 2022
| 1-BED Avg. Yearly RentChange from Q4 2022
| 2-BED Avg. Yearly RentChange from Q4 2022
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| Al Nahda | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| STUDIO Avg. Yearly RentChange from Q4 2022
| 1-BED Avg. Yearly RentChange from Q4 2022
| 2-BED Avg. Yearly RentChange from Q4 2022
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| Dubai Silicon Oasis | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| STUDIO Avg. Yearly RentChange from Q4 2022
| 1-BED Avg. Yearly RentChange from Q4 2022
| 2-BED Avg. Yearly RentChange from Q4 2022
|
Based on the data collected for our Dubai rental market report for Q1 2023, Jumeirah Village Circle (JVC) remained the most searched-for neighbourhood for affordable apartment rentals in Dubai:
- The average cost of renting flats in JVC increased by 23.5% for studios, enforced by a consistently steady demand. The asking rents for 1-bed and 2-bed units reported upticks of 15.2% and 14.1% respectively in Q1 2023.
- As per the DLD, the average rental transaction in JVC increased by 12% to be valued at AED 47.6k.
- On average, tenants paid AED 36k for studios, AED 51k for 1-bed and AED 73k for 2-bed flats as annual rent in Q1 2023.
Tenants looking for affordable housing also showed interest in Bur Dubai apartments:
- Asking rents for apartments in Bur Dubai experienced upticks of between 6% and 8% in Q1 2023.
- The DLD valued the average rent transaction in Bur Dubai at AED 54.2k, following a 2.09% increase from Q4 2022.
- The average cost of renting a studio in Bur Dubai stood at AED 33k in Q1 2023. 1-beds were rented out for AED 50k on average, whereas 2-bed units were priced at AED 70k per annum.
During Q1 2023, tenants also gravitated towards the reasonably-priced apartments in the following areas:
The average rental costs in these areas increased by between 4% and 19% for all property types. The most prominent increase was recorded in the price of studio flats in Dubai Silicon Oasis. The price hike can be attributed to a 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 Q1 2023 PROPERTY MARKET REPORT FOR DUBAI
POPULAR AREAS | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022 | 1-BED Avg. Yearly RentChange from Q4 2022 | 2-BED Avg. Yearly RentChange from Q4 2022 | 3-BED Avg. Yearly RentChange from Q4 2022 |
|---|---|---|---|---|
| Dubai Marina | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| 1-BED Avg. Yearly RentChange from Q4 2022
| 2-BED Avg. Yearly RentChange from Q4 2022
| 3-BED Avg. Yearly RentChange from Q4 2022
|
| Business Bay | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| 1-BED Avg. Yearly RentChange from Q4 2022
| 2-BED Avg. Yearly RentChange from Q4 2022
| 3-BED Avg. Yearly RentChange from Q4 2022
|
| Downtown Dubai | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| 1-BED Avg. Yearly RentChange from Q4 2022
| 2-BED Avg. Yearly RentChange from Q4 2022
| 3-BED Avg. Yearly RentChange from Q4 2022
|
| Palm Jumeirah | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| 1-BED Avg. Yearly RentChange from Q4 2022
| 2-BED Avg. Yearly RentChange from Q4 2022
| 3-BED Avg. Yearly RentChange from Q4 2022
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| Mohammed Bin Rashid City | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| 1-BED Avg. Yearly RentChange from Q4 2022
| 2-BED Avg. Yearly RentChange from Q4 2022
| 3-BED Avg. Yearly RentChange from Q4 2022
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Data collected for the Bayut Q1 2023 rental report for Dubai revealed that Dubai Marina continued to reign as the top choice for expensive apartments:
- During the first quarter of 2023, the asking rents for luxury flats in Dubai Marina recorded upticks of 31.9% for 1-bed units, 36.0% for 2-beds and 38.5% for 3-bed units. These increases are likely to be as a result of landlords listing their properties at higher price points to cater to increased demand.
- The DLD’s valuation of the average rental transaction in the area however, showed a decrease of 13.7% to stand at AED 94k.
- The rental costs for flats in Dubai Marina averaged at AED 91k for a 1-bed, AED 139k for 2-beds and AED 207k for 3-bed units in Q1 2023.
Tenants looking for luxury apartments also gravitated towards the properties in Business Bay:
- The asking rents for apartments in Business Bay increased across the board, recording upticks of 26.5% in 1-bed, 33.8% in 2-bed and 24.7% in 3-bed unit prices. There was a notable increase in higher priced inventory from Art XV Tower, Bay Square and DAMAC Maison Prive.
- These increases were also reflected in the area’s average transaction value calculated by the DLD, which stood at AED 80.4k following an uptick of 13.5%.
- In Q1 2023, tenants paid around AED 78k for 1-bed, AED 118k for 2-bed and AED 159k for 3-bed apartments in Business Bay.
According to the data collected for Bayut’s Dubai rental property market report Q1 2023, tenants also showed an inclination towards luxury flats in:
- Downtown Dubai
- Palm Jumeirah
- Mohammed Bin Rashid City
The average rental costs in these areas, as observed on Bayut, increased by up to 67.7%. The most significant uptick was observed in Downtown Dubai, following the much-anticipated handover of Burj Royale properties. Palm Jumeirah and Mohammed Bin Rashid City, with their limited inventory, also witnessed noticeable upward shifts in rental costs, particularly in the 3-bed unit prices.
- 3 BEDS
- |
- 5 BATHS
- |
- 1873 SQFT
- 1 BED
- |
- 2 BATHS
- |
- 976 SQFT
- 2 BEDS
- |
- 3 BATHS
- |
- 1324 SQFT
MIRDIF IS THE MOST SOUGHT-AFTER AREA FOR RENTING AFFORDABLE VILLAS IN DUBAI
POPULAR AREAS TO RENT VILLAS IN DUBAI – BAYUT’S Q1 2023 DUBAI REAL ESTATE MARKET REPORT
POPULAR AREAS | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022 | 3-BED Avg. Yearly RentChange from Q4 2022 | 4-BED Avg. Yearly RentChange from Q4 2022 | 5-BED Avg. Yearly RentChange from Q4 2022 |
|---|---|---|---|---|
| Mirdif | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| 3-BED Avg. Yearly RentChange from Q4 2022
| 4-BED Avg. Yearly RentChange from Q4 2022
| 5-BED Avg. Yearly RentChange from Q4 2022
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| DAMAC Hills 2 | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| 3-BED Avg. Yearly RentChange from Q4 2022
| 4-BED Avg. Yearly RentChange from Q4 2022
| 5-BED Avg. Yearly RentChange from Q4 2022
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| Reem | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| 3-BED Avg. Yearly RentChange from Q4 2022
| 4-BED Avg. Yearly RentChange from Q4 2022
| 5-BED Avg. Yearly RentChange from Q4 2022
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| Dubailand | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| 3-BED Avg. Yearly RentChange from Q4 2022
| 4-BED Avg. Yearly RentChange from Q4 2022
| 5-BED Avg. Yearly RentChange from Q4 2022
|
| Jumeirah Village Circle | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| 3-BED Avg. Yearly RentChange from Q4 2022
| 4-BED Avg. Yearly RentChange from Q4 2022
| 5-BED Avg. Yearly RentChange from Q4 2022
|
| Not available due to low/no historical inventory or influx of off-plan properties | ||||
According to the data collected for Q1 2023 rental trends in Dubai, as observed on Bayut, tenants searching for affordable villas focussed on Mirdif:
- The average rental cost for houses in Mirdif increased across the board. The average rent for 3-bed houses increased by 13.7%, with the 4 and 5-bed villas becoming more expensive by 10.3% and 14.7%, respectively.
- As per the DLD, the average rent transaction in Mirdif was valued at AED 132.8k, following an decrease of 0.28%.
- Tenants looking to move to Mirdif had to pay AED 98k for 3-bed, AED 118k for 4-bed and AED 134k for 5-bed villas in Q1 2023.
Potential renters also showed interest in the affordable houses in DAMAC Hills 2:
- The asking rents in DAMAC Hills 2 increased by up to 9% for 3 and 5-bed units, whereas the 4-bed houses became more affordable by 6.18%.
- The DLD transaction value for rental properties in DAMAC Hills 2 increased by 6.11% to average at AED 69.4k.
- The rental cost for 3-bed houses in DAMAC Hills 2 stood at AED 63k per annum. The 4-bed and 5-bed houses were rented out for AED 73k and AED 98k on average.
As per the Dubai rental trends observed on Bayut, tenants interested in affordable villas also showed preference for:
- Reem
- Dubailand
- Jumeirah Village Circle
The average annual rents for houses in these districts increased from between 2% and 59%. The most significant impact was observed in the average rental costs of 5-bed houses in Dubailand, where properties are being listed at higher values in response to increased demand.
UMM SUQEIM IS THE MOST POPULAR AREA FOR LUXURY VILLA RENTALS IN DUBAI
POPULAR COMMUNITIES TO RENT LUXURY HOUSES IN DUBAI – BAYUT’S Q1 2023 DUBAI PROPERTY MARKET REPORT
POPULAR AREAS | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022 | 4-BED Avg. Yearly RentChange from Q4 2022 | 5-BED Avg. Yearly RentChange from Q4 2022 | 6-BED Avg. Yearly RentChange from Q4 2022 |
|---|---|---|---|---|
| Umm Suqeim | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| 4-BED Avg. Yearly RentChange from Q4 2022
| 5-BED Avg. Yearly RentChange from Q4 2022
| 6-BED Avg. Yearly RentChange from Q4 2022
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| Jumeirah | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| 4-BED Avg. Yearly RentChange from Q4 2022
| 5-BED Avg. Yearly RentChange from Q4 2022
| 6-BED Avg. Yearly RentChange from Q4 2022
|
| Dubai Hills Estate | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| 4-BED Avg. Yearly RentChange from Q4 2022
| 5-BED Avg. Yearly RentChange from Q4 2022
| 6-BED Avg. Yearly RentChange from Q4 2022
|
| Palm Jumeirah | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| 4-BED Avg. Yearly RentChange from Q4 2022
| 5-BED Avg. Yearly RentChange from Q4 2022
| 6-BED Avg. Yearly RentChange from Q4 2022
|
| Arabian Ranches 2 | TRANSACTION PRICE Avg. Yearly RentChange from Q4 2022
| 4-BED Avg. Yearly RentChange from Q4 2022
| 5-BED Avg. Yearly RentChange from Q4 2022
| 6-BED Avg. Yearly RentChange from Q4 2022
|
| Not available due to low/no historical inventory or influx of off-plan properties | ||||
Consumer search trends for our Q1 2023 Dubai real estate market report revealed Umm Suqeim as the top choice for tenants interested in luxury villas:
- The average rental costs for 4-bed houses in Umm Suqeim increased by 49.7%, mainly due to an influx of rental inventory from Umm Suqeim 1. The 5-bed and 6-bed villas recorded upticks of 25.5% and 28.2% in average rent during Q1 2023.
- During Q1 2023, tenants have paid AED 271k for 4-bed, AED 315k for 5-bed and AED 474k for 6-bed villas in Umm Suqeim.
Potential renters were also attracted to the luxury villas in Jumeirah:
- The asking rents for villas in Jumeirah increased across the board, recording upticks of up to 53.2%. These increases were largely representative of the influx of inventory from La Mer.
- The annual rentals for villas in Jumeirah averaged at AED 273k for 4-bed, AED 331k for 5-bed and AED 460k for 6-bed units.
Other areas that appealed to tenants in search of luxury houses in Dubai included:
- Dubai Hills Estate
- Palm Jumeirah
- Arabian Ranches 2
Rental costs in these neighbourhoods increased from between 15% and 88%. The highest increase was recorded for properties in Dubai Hills Estate, where the influx of inventory from Club Villas, Maple, Sidra Villas, Golf Place and Parkway Vistas drove the prices upwards.
- 7 BEDS
- |
- 7 BATHS
- |
- 13757 SQFT
- 2 BEDS
- |
- 3 BATHS
- |
- 1811 SQFT
- 4 BEDS
- |
- 5 BATHS
- |
- 1446 SQFT
Commenting on the trends in Dubai, Haider Ali Khan, the CEO of Bayut & dubizzle and the Head of EMPG MENA said:
“I think there is absolutely no doubt that Dubai is experiencing a property boom unlike any other, while leading global economies are reeling under financial strains. Backed by a growing economy full of opportunity, not only has Dubai become a brand to be reckoned with, thanks to the safety, infrastructure, government support and overall positive outlook of the emirate, the city has also very successfully strengthened its hold as a popular metropolis, everyone in the world wants to be associated with.
Feels like a lot of talented people from all walks of life across the globe are making their way to Dubai, resulting in an obvious demand for real estate in the city. Interest for lease and sale in various communities is on the rise, with traffic growing every month. We are attracting over 7M visits each month for properties in Dubai alone on Bayut, and the number just keeps growing by the day, which shows how much trust and demand there is for the Dubai real estate market!
That wraps up our Q1 2023 Dubai Rental Market Report. For those interested in property investment opportunities, our Q1 2023 Dubai Sales Market Report presents an in-depth data 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 (MKKT RPT Q1 2023) are based 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.
