Dubai: Looking for a place to rent in Dubai that doesn’t break the bank? Stay away from Shaikh Zayed Road or the commercial centre.
The cheapest studio apartment in Dubai can be found in International City, about 17 kilometres away from Dubai Mall, according to data compiled by property consultant Asteco. Affordable places to rent can also be found in Deira, Discovery Gardens and Jumeirah Village, which is even farther away, about 27 kilometres from the Burj Khalifa area.
Rental rates for most apartments in Dubai continued to increase in the second quarter of the year, but at a modest pace, between 1 and 10 per cent. Rents in some locations, such as Deira and Shaikh Zayed Road, have not increased a bit, although apartments in Shaikh Zayed remain one of the most expensive.
The report released on Monday, however, covered only 10 apartment locations in Dubai and did not include areas, such as Al Nahda and other peripheral communities, which may be offering better rates.
Based on the report, tenants who can afford to shell out less than Dh50,000 a year for housing can head to International City, where a studio costs between Dh35,000 and Dh43,000, or Deira, where a similar room can be rented for Dh38,000 to Dh50,000.
For those who can afford a few dirhams more, studio apartments in Jumeirah Village, which cost anywhere between Dh50,000 and Dh60,000, and Discovery Gardens (Dh52,000 and Dh57,000) are also good options, price-wise.
Tenants who have fatter wallets and an appetite for luxury can head to Downtown Burj Khalifa, just a stone’s throw from the world’s largest shopping district, Dubai Mall, or opt for beachfront living in Jumeirah Beach Residence (JBR). Studio apartments in these areas are the most expensive in Dubai at the moment, averaging Dh82,500 annually.
Dubai Marina and Shaikh Zayed, where a studio apartments costs about Dh80,000 a year on average are less-pricey options.
As far as rent increases go, however, the most unstable appears to be JBR, which posted a 10 per cent growth, the highest, between the first and second quarter of 2014. Dubai Marina, Jumeirah Village and Palm Jumeirah apartments went up by 6 per cent during the same period, while those in Downtown Dubai and JLT increased by 4 per cent. International City apartments hardly increased at all.
A look at the rent increases year-on-year, however, paints a different picture. Between the second quarter of 2013 and second quarter of 2014, rents in International City have gone up by 66 per cent, the highest among the areas surveyed.
JLT apartments registered a 54 per cent increase, while those in Deira increased by 49 per cent. Dubai Marina's residential units are now 45 per cent more expensive than the previous year. Other areas have posted significant jumps, as well, including Jumeirah Village (42 per cent), Discovery Gardens (36 per cent), Downtown Dubai (24 per cent), Shaikh Zayed Road (22 per cent) and Palm Jumeirah (21 per cent).
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