Latest RERA rent index update shows that rental declines Downtown across all categories of apartments in Dubai.
Downtown Dubai, an upscale community, is witnessing rental are declines across all categories of apartments – studios, One or Two Bed units.
Studio apartment rates are decrease from 6.25% to 7.14% as per the final index update with rents ranging between Dh65,000 and Dh75,000 PA.
Rental of One-bed units are available from Dh90,000 to Dh110,000 PA have decrease rent from 8.33% to 10%, while Two bedroom apartment, renting from Dh160,000 to Dh190,000 PA have decrease rent from 5.88%.
The rents for One and Two bedroom apartment in Dubai Marina remain stable at Dh90,000 to Dh120,000 PA and Dh140,000 to Dh170,000 PA but stdio apartment rents fall down by 6.675 to 8.33%.
Dubai’s ‘affordable communities’ are also witnessing a decline in rents.
International City : Studio apartment’s rent are decrease by 12.5% to Dh20,000 to Dh35,000PA, while 2 Bedroom apartment’s rent fall by 8.33% with lease rates between Dh45,000 and Dh55,000.
Discovery Gardens : Studio apartment’s rent are dropped by 10% to Dh40,000 to Dh45,000PA, while 1 Bedroom apartment’s rent fall between 7-8.5% with lease rates between Dh55,000 and Dh65,000. 2 bedroom remained steady at Dh70,000-85,000 PA
Remraam : Studio apartment’s lease rates dropped between 11 and 12.5% to Dh35,000 to Dh40,000 PA. 1Bedroom remain unchanged between Dh45,000 to Dh55,000 PA.
Business Bay, Jumeirah Lakes Towers, and Dubai Silicon Oasis : Only 2 bedroom apartment rates are decrease from 6.27% to 14.28% with lease rates are available between Dh60,000 and Dh75,000 PA.
Business Bay : Lease rates rates for studios, One and Two bedroom apartments remained between Dh60,000-Dh70,000 PA, Dh80,000-Dh100,000 PA and Dh120,000-Dh140,000 PA, respectively.
In JLT : Rents for studio, one- and two-bed units continued to be around Dh55,000-75000 pa, Dh80,000-Dh100,000 pa and Dh120,000-Dh150,000 pa, respectively.
Dubai Silicon Oasis : Rates for studios, One and Two bedroom apartments remain at Dh35,000-Dh40,000 pa, Dh50,000-Dh60,000 pa and Dh60,000-Dh75,000 pa, respectively.
RERA, the regulatory arm of Dubai Land Department, updates the rent index thrice in a year.
If your contract is coming up for renewal, you can check the maximum increase allowed by the law through the rental index calculator, which applies the rent decree issued in 2013.
The Decree, No 43 of 2013 now sets a specific band for maximum rent increases that a landlord can demand at the time of renewing leases. The decree is applicable to private and public sector owned properties in Dubai, as well as within the free zones.
No rent increase if the rent of the property unit is less than 10 % of the average rent of a similar property in the same residential area.
If the rent value is between 11% and 20% less than the average rent of a similar property, the maximum rent increase shall be equal to 5% of the rent value.
If the rental value of a unit is between 21 and 30% less than the average rent of a similar unit, the maximum rent increase shall be equal to 10% of the rental value.
If the rental value of a property is between 31 and 40% less than the average rental of a similar property, the maximum rent increase shall be equal to 15% of the rental value.
If the rental value of a property unit is less than 40% or more of the average rent of a similar unit, the maximum rent increase applicable is of 20%.
The average similar rental value of the property will be determined by the Rera’s rent index.