Bayut & dubizzle’s Dubai Annual Rental Market Report for 2020: Prices for apartments and villas remain attractive

• Affordable Apartment Rentals
• Luxury Apartment Rentals
• Affordable Villa Rentals
• Luxury Villa Rentals

2020 has been an exceptional year for property markets across the globe. The coronavirus pandemic has brought about significant changes to our lifestyle, reshaping the meaning of a home. The need for personal space, privacy and the luxury of outdoor areas were never as evident as it became during the last year. As we step into the new year, Bayut & dubizzle’s combined, comprehensive report evaluates the performance of Dubai’s rental market in 2020.

For our annual market report, our data engineers have compared the rental prices in Dubai from 2020 on Bayut & dubizzle (excluding room share) to those from 2019, to understand more about the evolution of the Dubai rental price index and identify consumer preferences.

Unsurprisingly Dubai has been a tenant’s market in 2020 as favourable prices have allowed renters to upgrade to bigger units or more upscale neighbourhoods, or even renegotiate the leases on their current homes. Aside from offering competitive rental rates, landlords have also been proactive with incentives such as chiller-free units and multiple cheque payments for tenants seeking a property for rent in Dubai. Many landlords even offered struggling tenants rent-free periods during the course of the year, showing the resilience of the region’s real estate landscape.

When it comes of popular localities attracting a high volume of interest, tenants interested in affordable apartments and villas have shown a steady interest in suburbs such as Jumeirah Village Circle (JVC), Mirdif and Akoya Oxygen, and older, well-connected neighbourhoods like Bur Dubai, Al Nahda and The Springs. Meanwhile, tenants keen on the luxury home market prefer well-integrated neighbourhoods such as Dubai Marina, Downtown Dubai and Jumeirah, and family-oriented communities like Arabian Ranches and Dubai Hills Estate.

Our annual Dubai rental market report for 2020 has revealed that average prices in most popular areas have declined between 9% to 16% compared to those from 2019, which is in line with the overall market expectations post a challenging year. However, the luxury villa segment has shown promising signs of stability in 2020, with declines in rental prices being largely under 7%.

Bayut & dubizzle’s combined annual report compares the annual asking rents from 2020 to 2019, to provide the average rental prices 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.

Let’s move onto our detailed analysis of the rent trends in Dubai for 2020.

Jumeirah Village Circle is the most sought-after area to rent affordable property in Dubai

Rental prices in Dubai for affordable apartments in popular areas

As per the combined data released by Bayut & dubizzle, Jumeirah Village Circle (JVC) ranked as the most popular area among prospective tenants for affordable apartments in Dubai in 2020. Aside from its reasonably-priced properties, JVC has consistently drawn renters’ attention for its family-friendly amenities and access to major highways.

When comparing rental prices in Dubai for 2020 to those in 2019, the apartments in JVC have become more affordable, with average rents declining between 10% to 16% overall. The average rentals for studio flats in JVC went from AED 36k to AED 30k, while the 1-bed apartments for rent also became more affordable, going down from AED 52k to AED 46k. The 2-bedroom flats for rent in JVC saw average costs decrease from AED 75k in 2019 to AED 67k in 2020.

The rental trends in Dubai for 2020 reveal that prospective tenants searching for budget-friendly accommodation have shown interest in a mix of older, central neighbourhoods and suburban communities. Established areas such as Bur Dubai, Al Nahda and Deira have also drawn attention for their proximity to commercial hubs and easy accessibility. The apartments for rent in Bur Dubai have seen minor declines in prices between 7% to just over 12%, averaging at AED 36k for studios, AED 49k for 1-bed apartments and AED 67k for 2-bed flats.

Dubai Silicon Oasis (DSO) also features on the list of top areas for flats for rent in Dubai. Like JVC, this self-contained suburb has experienced decreases in line with the market average between 12% and 16%.

Seasons Community is most popular for renting apartments in JVC

As per our analysis of Dubai rental trends, Seasons Community is the most popular sub-community for renting apartments in Jumeirah Village Circle. The rental apartments in Seasons Community are located in themed buildings and have a starting price of AED 23.9k, as per current listings.

Other popular buildings in JVC include Diamond Views, Emirates Garden, Zaya Hameni and Knightsbridge Court.

Dubai Marina is the top choice for luxury apartment rentals in Dubai

Top areas to rent upscale apartments in Dubai

When it comes to luxury apartment rentals in Dubai, Bayut & dubizzle’s data indicates a preference for waterfront communities or upscale central neighbourhoods. Dubai Marina is the firm favourite to rent luxury apartments, thanks to its Riviera lifestyle and prices becoming more affordable throughout 2020.

The comparison of rent trends in Dubai Marina from 2020 to 2019 shows that average costs have declined between 10% to 14% across the board. Tenants can now expect to pay average rentals of AED 66k for 1-bed apartments in Dubai Marina, which was previously going for AED 77k in 2019. Similarly, the 2-bedroom flats in Dubai Marina currently average at AED 95k, while 3-bedroom apartments for rent stand at AED 139k.

The vibrant district of Downtown Dubai ranks second for luxury apartment rentals in Dubai, seeing average price decreases of under 11% in rental costs. While 1-bed apartments for rent in Downtown Dubai have declined from AED 88k to AED 78k, 2 and 3-bed apartments have remained largely stable at AED 124k and AED 192k respectively. This price stability for bigger units could be attributed to landlords capitalising on tenants’ increased interest for larger living spaces.

Other waterfront developments such as Palm Jumeirah, Jumeirah Beach Residence (JBR) and DIFC also feature among the top areas to rent expensive apartments in Dubai. While apartments in Palm Jumeirah have seen declines under 11%, both JBR and DIFC have seen rental prices become more competitive.

Marina Diamonds is the top sub-community for rental apartments in Dubai Marina

Marina Diamonds tops the list of popular sub-communities to rent apartments in Dubai Marina, as per Bayut & dubizzle’s Dubai property market analysis. Located close to the Dubai Metro, the flats for rent in Marina Diamonds are available in studio, 1 and 2-bedroom configurations, with rents starting from AED 28k, according to current listings.

Prospective tenants can also consider other popular sub-communities and buildings such as DEC Towers, Manchester Tower, Princess Tower and Studio One Tower.

Mirdif continues to ranks first for renting affordable villas in Dubai

Dubai rental prices for affordable villas

Mirdif has dominated consumer interest for renting budget-friendly villas in 2020, as per Bayut & dubizzle’s combined Dubai property market report for rental properties in 2020. This family-friendly neighbourhood has seen moderate declines between 8% and just over 14% in rental prices compared to those from 2019. The average rents for 3-bed villas in Mirdif have declined from AED 104k to AED 89k, while 4-bed houses have reduced from AED 122k to AED 109k. Prospective tenants can expect to pay a more affordable average rent of AED 116k for 5-bedroom villas in Mirdif instead of AED 127k in 2019.

Newer suburbs such as Akoya Oxygen and Reem have also captured tenants’ interest in 2020 as more renters look to upgrade to larger homes at economical prices. As per our analysis of rental prices in Dubai, both of these self-contained communities have seen averages reduce by 14% to 17%. The asking rents for villas in Akoya Oxygen have averaged at AED 59k for 3-bed villas, AED 75k for 4-bed houses and AED 77k for 5-bed homes.

More established communities such as JVC and The Springs have also featured amongst the popular areas to rent villas in Dubai at affordable prices. These areas have shown moderate declines between 7% to 12%, as per our Dubai rental price index for 2020.

Uptown Mirdif is the favourite for renting villas in Mirdif

The gated community of Uptown Mirdif has ranked as the clear winner for renting villas in Mirdif. Uptown Mirdif boasts a park, community mall, hypermarket and mosque, making it an ideal choice for families. The villas for rent in Uptown Mirdif have a starting price of AED 50k, as per current listings on Bayut.

Shorooq Mirdif is another popular choice to rent villa properties in Mirdif.

Jumeirah takes the top spot for high-end villas for rent in Dubai

Most popular areas to rent luxury villas in Dubai

Bayut & dubizzle’s analysis of rent trends in Dubai reveals that tenants interested in luxury villas prefer established, centrally-located neighbourhoods or golf course communities.

In 2020, Jumeirah reigned as the area of choice for renters keen on luxury villa properties in Dubai. As per our annual Dubai property market report for 2020, the average costs for 4 and 5-bedroom villas for rent in Jumeirah have seen minor reductions. The 4-bed villas in Jumeirah have average rents of AED 170k, while 5-bedroom houses have average rentals of AED 216k. On the other hand, 6-bedroom villas for rent in Jumeirah have become more affordable; rental prices went down from AED 351k in 2019 to AED 313k in 2020. This could be attributed to landlords keeping rents competitive as newer communities such as Dubai Hills Estate, Mudon and Mira gain popularity.

The golf course community of Arabian Ranches has continued to remain popular for its spacious villas and family-friendly lifestyle. Overall, the rental villas in Arabian Ranches have seen price decreases under 10% over the course of 2020. According to our report on rental prices in Dubai, the average rents for Arabian Ranches villas stand at AED 186k for 4-bed villas and AED 233k for 5-bed villas.

Other areas such as Al Barsha and Umm Suqeim have also drawn attention for their upscale, independent villas, abundant amenities and proximity to landmarks. The up-and-coming development of Dubai Hills Estate has also been steadily rising in popularity with tenants, as per our Dubai real estate market report 2020. While certain bed-types in Dubai Hills Estate have experienced an uptick in rental costs, these price fluctuations could result from the influx of ready properties, as more phases are handed over.

Jumeirah 1 is the top area for renting villas in Jumeirah

Home to shopping malls, outdoor leisure destinations, beaches and schools, Jumeirah 1 is the most popular choice among renters interested in villas in Jumeirah, as per our annual Dubai real estate report for 2020. Prospective tenants will find independent as well as compound villas in Jumeirah 1, with rental prices starting from AED 95k, as per listings on Bayut.

The second-most sought after neighbourhood in Jumeirah is Jumeirah 3, followed by Jumeirah 2.

Commenting on the trends for 2020, the CEO of Bayut & dubizzle and Head of EMPG MENA, Haider Ali Khan said: 

“2020 has been an exceptionally challenging and uncertain year for the real estate fraternity and the world at large. However, we’ve seen interest in the Dubai real estate sector remain consistently high, with both our portals generating record-breaking combined traffic of over 7 million sessions in December alone. Dubai has been able to stay resilient, in large part due to timely measures from the government, including the stimulus plans and deferred payments for off-plan buyers. At Bayut, we have also remained committed to supporting our partnered agencies and the wider industry during this difficult period by offering our services free-of-charge for two months to our existing partners, and extended support to agencies across the UAE who were not even on-board with us, in the form of free listings on the portal, which helped generate over 18.5M impressions and 65,000 leads for their properties. While these decisions definitely impacted our revenue, we made this strategic call to ensure that the entire industry would be in a better place to recover and rebuild when the situation improved, which it did. 

“Despite the difficult situation, it was a milestone year for us at Bayut & dubizzle.We’re immensely proud to be a part of the Emerging Markets Property Group, the only homegrown Unicorn in the Arab World. Two such well-known local brands coming together has definitely been a moment of triumph for the region at large and it has been extremely gratifying to build on our synergies and embark on this ‘stronger together’ journey from our extended office in d3 which is now spread over the 5th and 7th floors. 

“With the organised distribution of the vaccine, the future is looking more and more promising. Dubai has set a global example during the pandemic with extremely efficient containment measures and safety guidelines, and made sure to retain its status as a highly competitive market for investors from across the world.”

That concludes our analysis of rental prices in Dubai for 2020. You can also read up on our sale report for the real estate market in Dubai in 2020 to discover the most popular areas to buy affordable and luxury properties in the emirate. Learn more about the evolution of sales prices, expected ROI and popular sub-communities in these areas.

We will also be releasing our comprehensive reports on the Abu Dhabi, Sharjah and Ajman property markets soon.

You can also take a look at the latest Dubai real estate market news from December 2020 to stay updated on project launches, new real estate laws and more. Or take a look at our latest episode of The State of Real Estate, which deals with the growing holiday home market in the UAE.

Follow MyBayut for more updates from the UAE real estate market!

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