What is the average apartment rental in Dubai?

Understanding the factors influencing Dubai rent prices

Dubai’s real estate market is booming and there is an increasing number of properties being put up for rent in Dubai. While rental rates differ for different property types (e.g. apartment/villa), here are some of the most common factors that can impact Dubai house rent prices:

1. Location

Where is the apartment based and how close is it to key commercial, industrial, and recreational hubs? This is one of the biggest drivers of high rent rates in Dubai. 

Property for rent in Dubai is considered premium if it is in proximity to good schools, business districts, hospitals, and entertainment facilities as well - meaning that renters of such properties will be paying a higher amount. 

For example, Dubai rent prices for real estate in locations such as Palm Jumeirah, Business Bay, and Dubai Marina are much higher because of their connectivity, amenities, views and central location.

2. Economic trends 

Dubai’s economy has a major influence on its rental prices. For example, in 2023, the Dubai International Financial Centre (DIFC) witnessed a 20% surge in registered companies, representing the city’s bolstering economy. 

A blossoming economy and high foreign investment mean that there will be many visitors, new residents, and employees in Dubai, increasing the demand for housing and thereby driving up rent prices in Dubai. 

3. Government policies 

The Dubai Land Department (DLD) and its regulatory body, the Real Estate Regulatory Authority (RERA) work carefully to manage the market. 

Changes in regulations, such as readjustments to controls around rental price increases, can have a significant impact on the market. 

For example, changes to the RERA Index Calculator for 2024 were a surprise for renters and landlords as they allowed landlords to hike rental prices considerably.

Keeping informed of such policy changes is important, especially for renters, as it could impact their long-term plans. 

4. Lifestyle and amenities

The type and size of a property can either result in higher or lower rent prices. 

Typically, apartments in Dubai have facilities such as gyms, swimming pools, and playgrounds, which increase the rental cost. Villas and townhouses on the other hand may be more expensive due to the property size and additions such as private gardens/pools/parking and privacy. 

Typically, the larger a property is and the more amenities it has, the higher its rent prices.

Average apartment rental rates across neighborhoods in Dubai

The average Dubai rent prices for apartments fluctuate regularly.

Waterfront Communities

As of June 2024, here are the average apartment rental rates in Dubai (in AED) in popular waterfront communities:

Business Districts

As of June 2024, here are the average apartment rental rates in Dubai (in AED) in key business districts:

Other Popular Communities

As of June 2024, here are the average rents in Dubai (in AED) in other popular apartment communities:

Trends and fluctuations in Dubai apartment rent prices 

While fluctuations are common in the real estate market, here are some major trends that are impacting Dubai’s rent prices. 

• Investment properties are rapidly becoming a popular option for buyers in Dubai, as it is a tax haven for global buyers/investors. Residents of Dubai are exempt from paying taxes on their income, property, or capital gains, making property buying a highly lucrative option. 

• Apartments and houses in established communities like Downtown Dubai and Dubai Marina continue to be in high demand for both buyers and investors. Meanwhile, newer areas such as Dubai Creek Harbour, Arjan and Dubai Silicon Oasis are attracting growing interest from both buyers and renters.

• Rising rental prices in established communities is prompting some renters to either buy properties or relocate to more affordable areas. 

• Housing affordability is becoming a target for the government as it is striving to create more affordable housing in Dubai. The reasons for high Dubai rent prices include:

  • Growing population  

  • Booming economy

  • Limited availability in popular communities

  • Shortage of new property supply

  • Competition among tenants

As of 2024, these are localities wherein Dubai house rent prices are comparatively cheaper for renters, including:

• Bur Dubai 

• Discovery Gardens 

• Dubai Investment Park 

• Dubai Silicon Oasis 

• Dubai Sports City 

• International City 

Tips for negotiating rent prices in Dubai 

While Dubai rent prices may be high, there are several methods you can utilize to negotiate the rent prices of a property. 

1. A good impression 

First impressions can often be the last ones, especially for potential renters. If you arrive at a property viewing on time and make a good impression on the owner, the chances of them agreeing to rental price negotiations will be higher. 

2. Due diligence 

Exploring the area of the property and understanding the current property market trends is always recommended, as it will help you make an informed decision.  

You can compare similar properties in nearby areas in terms of size, amenities nearby, accessibility, etc. This will help you negotiate rent prices for a property In Dubai that you like. 

3. Use the RERA calculator 

The RERA calculator is the most effective tool to help you determine the appropriate rental rates for properties in Dubai. It provides the maximum permissible rent increases and will give you a starting point for your negotiations with landlords. 

4. Find a reliable real estate agent 

A reliable and experienced real estate agent will not only help smoothen your house-hunting endeavors but also help you decide on a suitable budget and find good properties within that range. 

Real estate agents will also communicate on your behalf and negotiate with the landlord to secure you the best deal.

5. Non-financial concessions 

Many landlords may be reluctant to budge from their desired rental prices for their houses in Dubai. If you are willing to compromise on a higher rent quote, you could request non-financial concessions such as a rent-free period, more cheque payments, or a fee waiver on certain costs. 

You could also request for more amenities or services such as furnishing, landscaping, etc. 

Future projections and outlook for Dubai apartment rent prices 

As there is more growth projected for Dubai’s real estate market and rent prices as well, here are some projections that can guide you as a renter in Dubai.

Upward trajectories 

According to a report by Deloitte, 2023 recorded some of the highest transactions in the real estate sector, with rental transactions increasing by 26%. As rental prices in Dubai has returned to pre-pandemic levels, the pace of growth in the market is expected to stabilize in 2024 once newer projects are completed. 

The National News also noted unprecedented increases in Dubai apartment rent prices in the past year - some as high as 20%-30%. 

Renters in Dubai may have to look for more affordable options if rent prices continue rising in the city. 

Urban versus suburban 

Recently, more and more renters have been looking to move towards Dubai’s suburbs in an attempt to not only find affordable properties but also embrace a more relaxed lifestyle, away from the city center’s activities. 

With more and more communities being established in the suburbs such as Damac Hills 2 and The Valley, renters may find cheaper rent prices away from the city, whilst still keeping a vibrant community with amenities on their doorstep.

Conclusion

This article summarized the average Dubai rent prices, current and future trends, and factors that influence these trends. 

Overall, the Dubai real estate market is seeing growth like never before, and this may impact those looking for property for rent in Dubai. Long-term financial planning and consulting RERA-accredited real estate agents can provide much-needed clarity on what options to choose from.