With Dubai’s property market featuring stronger rents amidst the prevalent slowdown, an increasing number of residents find themselves searching for affordable units in the emirate. As average annual rents in central localities continue to evade mid-income residents’ grasp, Bayut.com unveils the most economical localities for renting studio and one-bedroom apartments in Dubai.
Studio apartments located in remote localities of Dubai offer most affordable residential options. Per Bayut.com, studio apartments located in International City, International Media Production Zone (IMPZ), Dubai Investment Park (DIP), Dubai Sports City, Dubai Silicon Oasis, Dubailand, Discovery Gardens and Jumeirah Village Circle (JVC) were found to be the cheapest.
International City was found to be offering the most affordable studio apartments at an average annual rent of AED 37,000 per November 2015 stats. Similar apartments in IMPZ, DIP and Dubai Sports City featured average annual rents of AED 47,000, AED 48,500 and AED 49,000, respectively. Both, Dubai Silicon Oasis and Dubailand are offering studio apartments at an average rent of AED 50,000 per annum. Discovery Gardens and Jumeirah Village Circle offer a slightly higher rental tag, at AED 51,000 and AED 54,000 per annum.
Since the announcement of Dubai Metro extension and RTA’s release of Route 2020 map, apartments at Discovery Gardens and Jumeirah Village Circle have been receiving commendable interest as revealed by the increase in search hits on Bayut.com.
Small families interested in renting one-bedroom apartments at affordable price are advised to consider the residential options of International City, Al Nahda, Dubailand, Al Warqaa, Dubai Silicon Oasis, IMPZ, Downtown Jebel Ali, Dubai Sports City, Discovery Gardens and JVC.
One-bedroom apartments in International City, Al Nahda and Dubailand can be procured at average annual rents of AED 53,000, AED 59,000 and AED 60,000, respectively. Al Warqa, Dubai Silicon Oasis and IMPZ offer one-bedroom apartments at average annual rents of AED 65,000, AED 67,500 and AED 68,000, in that order. Although Downtown Jebel Ali is located closer to Maktoum International Airport and is furthest away from Dubai’s city centre, one-bedroom apartments here can be rented at AED 70,000 per annum. Spacious one-bedroom apartments in Jumeirah Village Circle commanded average rents of AED 74,000.
The run up to the Expo 2020 is attracting a flood of expats to the emirate as more businesses are relocating to Dubai and consequently creating jobs. The tax-free environment of Dubai allows companies to offer competitive salaries to their employees, but cost of living here still manages to edge out of the reach of many. Facts depict that mid- and low-income resident numbers are far greater than high-income residents. Dubai property developers have taken into account the increasing demand for affordable properties and many have already launched projects featuring affordable units at flexible payment plans.
Some property developers are even offering payment plans that resemble rent-to-own schemes. With property prices slowing down and rents increasing rapidly, more Dubai residents are looking to buy properties. The next year might see the property market dominated by buyers rather than sellers as the remaining of the forecasted 25,000 residential units get delivered.
