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

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

2021 has proved to be an exceptional year for the Dubai real estate market. From record transactions to price trends in most areas bouncing back to their pre-COVID standings – the real estate sector in Dubai has been on a continuous boom. As we look forward to another great year for the property market, Bayut & dubizzle’s Dubai Rental Market Report for 2021 reflects on the popular areas and price patterns for renting homes in the emirate. 

For our annual market report, our data engineers have compared the rental prices in Dubai from 2021 on Bayut & dubizzle (excluding room share) to those observed in 2020, to ensure a better understanding of the evolution of the Dubai rental property price index and to identify consumer preferences.

At a glance, it is easy to see that the demand for bigger homes has remained stable, resulting in an upward tick for rental costs for villas and luxury properties. At the same time, with corporations offering greater work-from-home flexibility, people on a tighter budget have a wider range of properties to choose from, without worrying about commute durations. This has led to more competitive pricing for affordable properties to rent in Dubai.  

When it comes to popular localities attracting high consumer interest, tenants looking for budget apartments and villas have focussed their search on well-integrated suburban communities like Jumeirah Village Circle (JVC), Mirdif and DAMAC Hills 2, and older neighbourhoods like Al Nahda, Bur Dubai and The Springs. Contrastingly, tenants keen on luxury rentals have preferred waterfront and central districts such as Dubai Marina, Downtown Dubai and Jumeirah, as well as family-oriented communities like Arabian Ranches and Dubai Hills Estate.

Bayut & dubizzle’s annual Dubai rental market report for 2021 has revealed that property price trends have taken an upward trajectory in most popular areas, recording increases of up to 40% compared to those from 2020. However, the affordable apartments segment has experienced price decreases of up to 21% in 2021, with landlords keeping rents largely competitive.

Bayut & dubizzle’s combined annual report compares the annual asking rents from 2021 to 2020, 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 look at our detailed analysis of Dubai property price trends for rental properties for 2021.

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 data compiled for Bayut & dubizzle’s Dubai real estate rental market report for 2021, Jumeirah Village Circle (JVC) has emerged as the most popular area among prospective tenants for affordable apartments. JVC has consistently appealed to renters with its reasonably-priced properties, convenient highway connectivity and family-friendly amenities.

A comparison of the rental prices in Dubai for 2021 to those observed in 2020, has shown that the average rents for flats in JVC have remained constant across the board. The asking rent for studio flats in JVC has averaged at AED 28k, while the 1-bedroom flats for rent have been available for AED 43k, on average. The prices for 2-bedroom flats for rent in JVC decreased by 1% going from AED 64k in 2020 to AED 63k in 2021.

Al Nahda has emerged as the second most popular choice for tenants searching for affordable apartments for rent in Dubai. Prices for Al Nahda apartments for rent have seen declines of up to 21% in 2021. There has been a greater influx of low-priced listings on Bayut and dubizzle, giving home seekers a wider variety of affordable properties to consider. The asking rents for apartments in Al Nahda averaged at AED 21k for studios, AED 30k for 1-bed apartments and AED 43k for 2-bed flats.

The ever-popular area of Bur Dubai is third on the list of popular areas for rental flats in Dubai. This established older neighbourhood has seen rental prices decrease by 3% to 11%, averaging at AED 31k for studios, AED 45k for 1-bed flats and AED 64k for 2-bed units.

The rental trends in Dubai for 2021 has also revealed that potential tenants in search of budget-friendly apartments have shown interest in centrally located older neighbourhoods and suburban districts, such as Deira and Dubai Silicon Oasis (DSO).

Apartments for Rent in Dubai

View all

AED 72,000 Yearly

• 1 BED
• |
• 2 BATHS
• |
• 925 SQFT

Reef Residence, JVC District 13, Jumeirah Village Circle (JVC), Dubai, UAE

AED 88,000 Yearly

• 2 BEDS
• |
• 2 BATHS
• |
• 937 SQFT

AKA Residence, JVC District 11, Jumeirah Village Circle (JVC), Dubai, UAE

AED 117,000 Yearly

• 2 BEDS
• |
• 3 BATHS
• |
• 1233 SQFT

Lucky 1 Residences, JVC District 13, Jumeirah Village Circle (JVC), Dubai, UAE

AED 94,000 Yearly

• 1 BED
• |
• 2 BATHS
• |
• 731 SQFT

SH Living 1, JVC District 14, Jumeirah Village Circle (JVC), Dubai, UAE

AED 70,000 Yearly

• 1 BED
• |
• 2 BATHS
• |
• 944 SQFT

Al Naim Residence, JVC District 10, Jumeirah Village Circle (JVC), Dubai, UAE

AED 113,000 Yearly

• 2 BEDS
• |
• 3 BATHS
• |
• 1348 SQFT

Belselah Residence, Al Barsha 1, Al Barsha, Dubai, UAE

AED 75,000 Yearly

• 1 BED
• |
• 2 BATHS
• |
• 859 SQFT

Belselah Residence, Al Barsha 1, Al Barsha, Dubai, UAE

AED 78,000 Yearly

• 1 BED
• |
• 2 BATHS
• |
• 903 SQFT

Belselah Residence, Al Barsha 1, Al Barsha, Dubai, UAE

AED 107,000 Yearly

• 2 BEDS
• |
• 3 BATHS
• |
• 1191 SQFT

AAA Residence, JVC District 13, Jumeirah Village Circle (JVC), Dubai, UAE

AED 125,000 Yearly

• 2 BEDS
• |
• 2 BATHS
• |
• 1058 SQFT

Al Arta 2, Al Arta, The Greens, Dubai, UAE

DISTRICT 11 IS MOST POPULAR FOR RENTING APARTMENTS IN JVC

Based on our real estate trend analysis for the Dubai rental market report 2021, the family-friendly District 11 has attracted the highest tenant interest for apartments in JVC. Located between Al Khail Road (E44) and Hessa Street, this sub-community offers a range of properties. The rental apartments in District 11 JVC are available in studio, 1, 2 and 3-bed configurations with a starting price of AED 24k per annum.

Besides District 11, Seasons Community, Diamond Views, District 10 and Bloom Towers have also emerged as popular choices for rental apartments in JVC.

DUBAI MARINA IS THE TOP CHOICE FOR LUXURY APARTMENT RENTALS IN DUBAI

TOP AREAS TO RENT UPSCALE APARTMENTS IN DUBAI

Our Dubai rental market report indicates a continued tenant preference for upscale central communities and waterfront districts for luxury apartment rentals. Dubai Marina has remained the firm favourite to rent luxury flats. Offering an opulent Riviera lifestyle, apartments in Dubai Marina have become more expensive in 2021.

A comparison of rent trends in Dubai Marina 2021 to those in 2020 shows that the average rents in the area have increased between 1% and 7% across the board. Tenants looking for rental properties in Dubai Marina can now expect an average rent of AED 64k for 1-bed apartments in Dubai Marina, which previously stood at AED 63k in 2020. The 2-bedroom flats in Dubai Marina currently average at AED 98k, while 3-bedroom apartments for rent stand at AED 146k.

The vibrant Downtown Dubai district took the second spot for luxury apartment rentals in Dubai. Average prices for rental property here increased by up to 26% owing to a handover of luxury units in upscale projects like Address BLVD Sky Collection, Vida Residence Downtown, The Address The BLVD and The Address Residence Fountain Views.

Tenants interested in renting luxury apartments in Downtown Dubai can expect to pay AED 84k for 1-bed units. The rents for 2-bed flats have increased from AED 121k in 2020 to AED 131k in 2021. The average rent for 3-bed apartments has averaged at AED 251k in 2021.

Other developments that garnered interest from tenants searching for luxury apartment rentals include City Walk, where properties became more affordable by up to 11%. Prominent waterfront districts such as Palm Jumeirah and Jumeirah Beach Residence (JBR) have also remained popular among renters, with average rents increasing between 10% and 24%.

MARINA DIAMONDS IS THE TOP SUB-COMMUNITY FOR RENTAL APARTMENTS IN DUBAI MARINA

Based on the rental trends in Dubai observed during 2021, Marina Diamonds has emerged as the most searched for building among tenants interested in renting apartments in Dubai Marina. Ideally located in proximity to the Dubai Metro, the Marina Diamonds flats for rent come in studio, 1 and 2-bed layouts. According to the current listings on Bayut, the minimum annual rent for these properties is AED 32k.

Tenants considering luxury apartments for rent in Dubai Marina have also shown an inclination towards the properties in DEC Towers, Marina Gate, Sulafa Tower and Manchester Tower.

MIRDIF CONTINUES TO RANK FIRST FOR RENTING AFFORDABLE VILLAS IN DUBAI

DUBAI RENTAL PRICES FOR AFFORDABLE VILLAS

When it comes to affordable villas, The Bayut & dubizzle annual Dubai rental market report for 2021 has shown that Mirdif garnered the most consumer interest. The family-friendly area has experienced moderate declines ranging between 1% and 5% in rental prices compared to 2020. After a 5% decrease, the average rent for 3-bed villas in Mirdif has dropped to a highly competitive AED 84k in 2021. Asking rents for 4-bed houses have decreased from AED 108k to AED 107k, whereas tenants can pay AED 115k on average to rent 5-bedroom villas in Mirdif.

DAMAC Hills 2, previously known as Akoya Oxygen, has also appealed to tenants for budget villa rentals in 2021. As per our analysis of villa rental prices in Dubai, the rents for 3 and 4-bed units remained fairly stable, averaging at AED 58k and AED 78k respectively. The asking rent for 5-bed villas in DAMAC Hills 2 has averaged at AED 93k, after a 20% increase from 2020.

The established JVC and The Springs communities alongside the up and coming Dubai South development have also emerged as tenant favourites to rent villas in Dubai at affordable prices. These areas have shown price upticks between 6% and 18%, as per our Dubai rental price index for 2021.

UPTOWN MIRDIF IS THE FAVOURITE FOR RENTING VILLAS IN MIRDIF

The gated Uptown Mirdif community has remained a firm favourite for renting villas in Mirdif. Dotted with communal facilities that include a park, a mosque, a community mall and a hypermarket, Uptown Mirdif is a great choice for families. The minimum financial outlay to rent villas in Uptown Mirdif averages at AED 50k per annum, as per current listings on Bayut.

Shorooq Mirdif has also remained popular among tenants looking for rental villas 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 Dubai rental market report for 2021 has revealed that tenants looking for luxury villas are more inclined towards, centrally-located districts or golf course communities.

In 2021, Jumeirah has emerged as the most popular area for luxury villa rentals in Dubai. As per our analysis of the property price trends in the area, the average rental costs for villas for rent in Jumeirah have experienced upticks across the board.

The 4-bed villas in Jumeirah have average rents of AED 178k, while the rental costs for 5-bedroom houses have averaged at AED 235k after a 6.5% increase from 2020. The 6-bedroom villas for rent in Jumeirah have also become more expensive with rental prices increasing from AED 294k in 2020 to AED 370k in 2021.

Al Barsha lands on the second spot in our round-up of the most popular areas for luxury villa rentals based on consumer preferences. The upscale, independent villas in Al Barsha have seen upticks of up to 39% in rental costs. The drastic price shift for larger properties was fueled by the handover of new units in the Bayti sub-community. On average, tenants can expect to pay AED 173k for 4-bed villas, AED 236k for 5-bed units and AED 357k for 6-bed houses for rent in Al Barsha.

Other areas that appealed to tenants seeking luxury villas in Dubai include the Arabian Ranches and Dubai Hills Estate golf communities as well as the quaint Umm Suqeim neighbourhood. Rental prices in these areas of Dubai largely increased by 9% to 41%, with the significant upticks being traced back to project completions and handovers of properties during 2021.

Villas for Rent in Dubai

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AED 1,300,000 Yearly

• 5 BEDS
• |
• 8 BATHS
• |
• 9993 SQFT

Sanctuary Falls, Jumeirah Golf Estates, Dubai, UAE

AED 220,000 Yearly

• 4 BEDS
• |
• 4 BATHS
• |
• 5156 SQFT

Golf Links, Emaar South, Dubai South, Dubai, UAE

AED 239,999 Yearly

• 5 BEDS
• |
• 7 BATHS
• |
• 2637 SQFT

JVC District 15, Jumeirah Village Circle (JVC), Dubai, UAE

AED 175,000 Yearly

• 4 BEDS
• |
• 3 BATHS
• |
• 2550 SQFT

Mira Oasis 1, Mira Oasis, Reem, Dubai, UAE

AED 420,000 Yearly

• 3 BEDS
• |
• 4 BATHS
• |
• 3525 SQFT

Jumeirah Park Homes, Jumeirah Park, Dubai, UAE

AED 115,000 Yearly

• 3 BEDS
• |
• 4 BATHS
• |
• 1517 SQFT

Expo Golf Villas 4 (Greenviews 1), Expo Golf Villas, Emaar South, Dubai South, Dubai, UAE

AED 200,000 Yearly

• 4 BEDS
• |
• 6 BATHS
• |
• 1398 SQFT

Mulberry Park, JVC District 15, Jumeirah Village Circle (JVC), Dubai, UAE

AED 175,000 Yearly

• 3 BEDS
• |
• 4 BATHS
• |
• 2236 SQFT

Mira Oasis 3, Mira Oasis, Reem, Dubai, UAE

AED 180,000 Yearly

• 4 BEDS
• |
• 6 BATHS
• |
• 1819 SQFT

Mulberry Mansions, JVC District 13, Jumeirah Village Circle (JVC), Dubai, UAE

AED 150,000 Yearly

• 3 BEDS
• |
• 3 BATHS
• |
• 1727 SQFT

Amaranta 2, Amaranta, Villanova, Dubailand, Dubai, UAE

JUMEIRAH 1 IS THE TOP AREA FOR RENTING VILLAS IN JUMEIRAH

Offering an upscale lifestyle with the convenience of having schools, shopping malls, beaches and other leisure destinations nearby, Jumeirah 1 has emerged as the most popular sub-community for tenants interested in villas in Jumeirah. As per the rental trends observed in our annual Dubai real estate report for 2021, potential renters can find compound and independent villas for rent in Jumeirah 1 for a starting price of AED 120k.

Besides Jumeirah 1, tenants in search of luxury villa rentals in the area have shown a preference towards Jumeirah 3 and Jumeirah 2, respectively.

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

“It has been an interesting year for the economy of the country and the contribution of the real estate sector towards this growth is stronger than ever. There have been some record-breaking sales and rental transactions in the emirate last year and our own inventory has increased substantially to meet the rising demand.

If we look at data from DLD, the city’s real estate sector also attracted over 38,000 foreign investors from outside the GCC region in the last year alone, which is indicative of the growing demand for investment in Dubai from international investors. Thanks to the many initiatives launched by the government to safeguard the public and create a viable environment for investment, we can expect the demand to stay steady for Dubai real estate in the coming months too.” 

That brings us to the end of our rental market report for 2021. It has been a remarkable year for the Dubai real estate market, which also reflects in the price trends observed for the sale of properties in the emirate. For a detailed account of how property sale prices fared in the luxury and affordable market segments, refer to our 2021 sale report for the real estate market in Dubai.

We will soon be releasing our comprehensive insights on the property markets in Abu Dhabi, Sharjah and Ajman, so stay tuned.

Take a look at the latest Dubai real estate market news from December 2021 for updates on project launches and latest developments in the UAE real estate sector.

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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.