Attention tenants: Renting an apartment now in Downtown Dubai costs 10.29% less than in December

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downtown dubaiThe growing property market in Dubai and the recent spikes seen in sale and rental prices of apartments and villas is an encouraging sign for developers and international investors. However, the situation is not that pleasing for everyone in Dubai. A rather large group of people, expats of course, who have been priced out from many high-end localities, are paying a heft price for this recovery. These priced out tenants are now paying a similar amount of rent for living in the secondary areas of Dubai as they did for renting a residential unit in posh localities.

With various upcoming events of international importance, as well as inauguration of a series of posh residential projects, tenants in Dubai have all the reasons to get panic. However, there is one locality in Dubai where renting an apartment right now is more than 10 per cent cheaper than it was at the end of 2013, and that locality is not an ordinary one but one of Dubai’s most happening areas, Downtown Dubai.

According to Bayut.com’s stats for January 2014, the average rental price of apartments in Downtown Dubai is 10.29 per cent lower than it was in December 2013.

Dubai price chart

The fall in rental prices of Downtown Dubai apartments was seen in all bed groups, but it was the lowest for studio apartments at 1.54 per cent. It appears that the demand of 1-, 2- and 3-bedroom apartments in the locality experienced a downward ride in the beginning of 2014, with dropping rents at an average of 13.21 per cent.

The rental price drop seen in Downtown Dubai apartment during January 2014 was the highest for 2-bedrooms apartment at 15.62 per cent, followed by 3- and 1-bedroom apartment with an average rental price drop of 12.46 per cent and 11.5 per cent, respectively.

For property owners and those looking to invest in Downtown Dubai, the picture is not that dark. For Downtown Dubai apartments, if we compare rental prices of January 2013 and January 2014, there is an average price hike of 5.33 per cent. The annual percentage rise for Downtown Dubai remained the highest for 2 bedroom apartments at 11.60 per cent. For studios and 1-bedroom apartments, the rental price increased by 5.27 per cent and 7.69 per cent, respectively, while the rents of 3-bedroom apartments dropped by 2.80 per cent.

No other locality in Dubai has shown such interesting rental price trends in 2013. It looks like its now time for Downtown Dubai to prepare for accommodating more tenants and involving more investors at the same time.

Aqsa Shabbir is marketing analyst at Bayut.com

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Reading Time: 2 minutes

The growing property market in Dubai and the recent spikes seen in sale and rental prices of apartments and villas is an encouraging sign for developers and international investors. However, the situation is not that pleasing for everyone in Dubai. A rather large group of people, expats of course, who have been priced out from many high-end localities, are paying a heft price for this recovery. These priced out tenants are now paying a similar amount of rent for living in the secondary areas of Dubai as they did for renting a residential unit in posh localities.

Reading Time: 2 minutes

downtown dubaiThe growing property market in Dubai and the recent spikes seen in sale and rental prices of apartments and villas is an encouraging sign for developers and international investors. However, the situation is not that pleasing for everyone in Dubai. A rather large group of people, expats of course, who have been priced out from many high-end localities, are paying a heft price for this recovery. These priced out tenants are now paying a similar amount of rent for living in the secondary areas of Dubai as they did for renting a residential unit in posh localities.

With various upcoming events of international importance, as well as inauguration of a series of posh residential projects, tenants in Dubai have all the reasons to get panic. However, there is one locality in Dubai where renting an apartment right now is more than 10 per cent cheaper than it was at the end of 2013, and that locality is not an ordinary one but one of Dubai’s most happening areas, Downtown Dubai.

According to Bayut.com’s stats for January 2014, the average rental price of apartments in Downtown Dubai is 10.29 per cent lower than it was in December 2013.

Dubai price chart

The fall in rental prices of Downtown Dubai apartments was seen in all bed groups, but it was the lowest for studio apartments at 1.54 per cent. It appears that the demand of 1-, 2- and 3-bedroom apartments in the locality experienced a downward ride in the beginning of 2014, with dropping rents at an average of 13.21 per cent.

The rental price drop seen in Downtown Dubai apartment during January 2014 was the highest for 2-bedrooms apartment at 15.62 per cent, followed by 3- and 1-bedroom apartment with an average rental price drop of 12.46 per cent and 11.5 per cent, respectively.

For property owners and those looking to invest in Downtown Dubai, the picture is not that dark. For Downtown Dubai apartments, if we compare rental prices of January 2013 and January 2014, there is an average price hike of 5.33 per cent. The annual percentage rise for Downtown Dubai remained the highest for 2 bedroom apartments at 11.60 per cent. For studios and 1-bedroom apartments, the rental price increased by 5.27 per cent and 7.69 per cent, respectively, while the rents of 3-bedroom apartments dropped by 2.80 per cent.

No other locality in Dubai has shown such interesting rental price trends in 2013. It looks like its now time for Downtown Dubai to prepare for accommodating more tenants and involving more investors at the same time.

Aqsa Shabbir is marketing analyst at Bayut.com

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