Hotspots in Dubai Experience an Increase In Rental Prices

Although the prices of rental properties remained relatively stable in August, hotspots in famous communities in Dubai experienced an increase in prices in comparison to the previous months.

According to statistics released by the property review, it showed that there was a 5% decrease in the rent prices, however other hotspot areas like Bur Dubai, International City and Jumeirah Lake Towers (JLT) saw an increase in rental prices during the month of August.

Bayut.com, a well-recognized property portal with thousands of properties in a statement to reporters explained that “affordability is the main topic of discussion in Dubai and this was shown in the statistics during the month of August and to the satisfaction of renters, there was an increase in the value of the rental market.”

In the evaluation done in August by the property specialist’s, it was reported that the midpoint rental prices for various communities was at Dh54, 000 which inclined a 5% drop from the previous month. However in areas like International City and Bur Dubai, there was a 4% and 11% increment respectively.

In August, rents for one-bedroom flats was at Dh93,000 which amounts to a 1% increment, while two bedrooms units was at Dh142,000, which amounts to a 2% decrease.

However prices in Dubai Marina were unchanged as one bedroom flats were at Dh101, 336, but things were slightly different in Business Bay as there was a 3% decrease from Dh96, 324 to Dh93, 786.

An increase in prices for one bedroom flats by 3%, 5%, 1% and 11% was seen for Jumeirah Lakes Towers, International City, Downtown Dubai and Bur Dubai respectively.

Furthermore, three bedroom apartments also experienced a decrease in prices which was at Dh206, 000, a 4% drop in the month of July to Dh197, 000 in August.

This decrease in rental prices was not experienced in Abu Dhabi as it experienced a 3% increase in prices during July 2016.

Information gathered from reports explains that “the two prime markets of the UAE continue to maintain their pace by bringing in more investors which has lead Dubai to acquire real estate transactions worth an admirable $43 billion by the end of August 2016”

From the statistics available for the month of July and August it can be seen that Jumeirah Lake Towers, Downtown Dubai, Bur Dubai and International City were the major communities that experienced an increase in their sales value.