International City, Dubai Silicon Oasis and Bur Dubai most affordable areas
Property rents in Dubai continue to increase as the market experienced massive growth in 2022 while the current average rent for villas has crossed Dhs268,000, and apartments Dhs90,000
Despite the average increase in rental prices, certain areas in old and new Dubai will continue to atract tenants because of low rents and high demand in the market following strong economic activity in the Emirate.
According to Zoom Property Insights, the average rent of villas in Dubai crossed Dhs 268,000 while apartment rents hit Dhs90,000 last year. It is expected that a similar trend will continue this year, the Insights data says.
Ata Shobeiry, CEO of Zoom Property, believes that the high influx of expatriates moving to Dubai is a major factor that is driving the rental market.
“The number of people shiting their base in Dubai to seek employment and entrepreneurship along with an upscale lifestyle is rising with every passing day. This has led to demand for rental properties and a subsequent rise in the average rent. Still, there are some areas where tenants can find affordable housing options,” he said.
According to the Zoom Property Insights, International City is the most affordable area to rent properties in Dubai, with average rent falling between Dhs19,000 and Dhs55,000.
Dubai Silicon Oasis is another area renters prefer for low rents as the average rent here ranges from Dhs 25,000 to Dhs 52,000 and
Dhs 32,000 and Dhs 68,000 for studios and 1-bedroom apartments, respectively.
Bur Dubai, with an average rent of Dhs 20,000 – Dhs 60,000 for studios and Dhs 36,000 – Dhs 130,000 for 1-bed apartments is another popular area for affordable housing in Dubai.
Besides the aforementioned, Discovery Gardens (average rent between Dhs 30,000 and Dhs 60,000) and Dubai Sports City (Dhs 26,000 and AED 80,000) remain the preferred choices of tenants seeking affordable properties.
For rental villas, Deira ranks on top among the most affordable rents, with an average rent of AED 114,175. It is followed by Jumeriah Village Triangle and Jumeirah Village Circle averaging Dhs 149,598 and AED 155,529, respectively, as the annual rent.
Lastly, Reem, with an average annual rent of AED 157,414 is another popular community for affordable villas in Dubai.
“With rents further set to escalate in 2023, tenants will focus more on renewing contracts instead of signing new rental agreements. It’s the trend that was seen in 2022. However, affordable areas will get more traction, which will result in a moderate price increase in them as well,” Shobeiry concluded.
Zoom Property is an emerging property portal in the UAE with a primary focus on Dubai, Abu Dhabi and Sharjah markets. The portal also features international properties in KSA, the UK and other regions on the plaform to facilitate buyers and renters. It is also popular among developers, real estate brokerages and property sellers.
Meanwhile, Azizi Developments, a leading private developer in the UAE, is seeing a high demand from international investors for Creek Views II, its recently launched Dhs 350 million development on the shores of the iconic Dubai Creek in Dubai Healthcare City.
Creek Views II is outstandingly positioned among global real estate offerings, with 17.86% of its units having been acquired by UAE investors, 11.61% by Indian nationals, and 6.25% by both Jordanian and Russian investors. Other nationalities who have invested in units at Creek Views II include German, English, Bengali and Dutch passport holders, among others.
Creek Views II’S design philosophy represents Dubai’s remarkable transition from a traditional past to a modern, reinvented future. The 587-residence project is designed to enrich lifestyles with its two swimming pools, sauna, steam room, fully equipped gym, and children’s play area.
The development is scheduled for handover by Q4 2023; with it now being over 30% complete. Creek Views II comprises 116 studios as well as 436 one- and 35 two-bedroom apartments.
In his comments, Farhad Azizi, CEO of Azizi Developments, said: “We are delighted to be welcoming investors from a wide range of nationalities to our clientele, who have expressed substantial interest in Creek Views II and our porfolio as a whole. Dubai has continuously proven to be a world-leading hub for many key industries, especially the booming real estate sector, and the growing number of international investors who have chosen to reside and invest here. We now look forward to selling Creek Views ll’s remaining inventory, all while maintaining the highest quality standards and speed in its construction.”
Creek Views II is situated in the beautifully landscaped and well-thought-out DHCC, the emirate’s health and wellness destination, with direct access to Al Khail Road. This community is not only home to a wide variety of leading, high-tech medical centres, but also comprises an abundance of lifestyle and shopping options. Creek Views II will grant picturesque views as well as an elegant, ultra-modern design and finishing.