Dubai’s High Season Rental Market: Trends, Costs, and Savings Tips
Rents in Dubai have been on a steady rise since early 2020, with residential rates increasing by 42% and per square meter prices growing by a third. This upward trajectory continues into 2024, with experts predicting up to a 20% year-on-year increase in prime residential areas. As the scorching summer wanes, Dubai’s real estate market transitions into the high season, leading to further increases in rental prices.
Colife Dubai, an all-in-one solution for modern tenants, property owners, and private investors headquartered in Dubai, sheds light on the latest rental market trends.
Popular Areas and Properties for Rent
The Dubai rental market, with the start of the season, shows steady demand for housing in certain areas, particularly Dubai Marina. One to two-bedroom apartments are the most sought-after, as this area traditionally attracts both expats and tourists looking for comfort and a prestigious location. Studios receive slightly less attention.
Business Bay also remains popular with renters, where demand is more focused on one-bedroom apartments.The third most popular area in Dubai for living is currently JLT (Jumeirah Lake Towers), where tenants most often search for one-bedroom apartments.
These neighborhoods are at the peak of popularity, and rental prices here start at 10,500 AED per month for studios. One-bedroom apartments can be found for prices starting from 11,000 AED, while two-bedroom apartments start from 12,300 AED per month.
«Short-term rentals, spanning from a week to 1.5 months, see increased pricing, averaging around 500 AED per day. This reflects the strong demand for high-quality accommodations in central districts», — says Elena Selivanovа, Sales Director at Colife Dubai.
At the same time, there’s a high demand for budget-friendly rentals, with many inquiries ranging from 5,000 to 7,000 AED per month, despite the average cost of an apartment in Dubai being around 11,000 AED. In most cases, a studio is the only option within the 7,000 AED range.
Colife Dubai’s Tips for Saving on Rent While Living Comfortably
Long-term contracts: Opting for a year-long lease significantly reduces monthly costs. For example, one of Colife’s one-bedroom apartments in Dubai Marina costs 9,900 AED per month for a 12-month lease, whereas the same apartment would be 11,000 AED per month for just a 3-month lease.
Consider older buildings or less central areas: Well-maintained older buildings and neighborhoods like Al Furjan offer more affordable options without compromising quality.
“If you have a driving license, consider renting a car and living in areas a bit farther from the city’s most popular spots. The combined cost of a car and an apartment outside the pop areas may end up saving you money,” adds Elena Selivanova.
Look for special offers: Many real estate agencies and landlords offer great discounts to attract tenants. At Colife , for instance, we offer discounts of up to 20% on 3- to 6-month rentals to stand out in the competitive market. These promotions happen frequently, so it’s important to stay updated on the latest market trends.
Dubai’s high season heralds a period of heightened rental activity, driven by increasing demand and rising costs. As this trend shows no signs of slowing down, tenants should be prepared for further price increases.
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