Tennents are witnessing sharper rent hikes in Arjan, Deira, and Silicon Oasis residences.
Dubai: There is fresh evidence that rent hikes in Dubai are starting to force up prices, even in regions where they had held relatively stable for the duration of the previous 22 months. Rates in the Deira area, which offers various rental possibilities, climbed by 4.4% in September. As a consequence, a typical bigger two-bedroom flat may now bring in between Dh60,000 and Dh70,000 for the landlord.
In fact, according to figures from the real estate agency CBRE, Deira came in second for the most significant rental rise during September, just behind Arjan, another popular suburb for families earning mid- to upper-mid earnings, whose growth reached 4.7%. According to CBRE, Arjan’s average rent was close to Dh45,000.
In Dubai as a whole, gains in September were 2.5%, proving that there have been no signals of a slowing in rent rises. The most wealthy parts of the city, Palm Jumeirah, Jumeirah, and Downtown Dubai, experienced increases of 3.8%, 4.1%, and 3.5% during the month. The other recognized premium destination, Dubai Marina, grew by 2.6%. In the emirate, rent rises have topped 26% over the previous 12 months that concluded in September.
Affordable places suffer from the pull
Estate specialists argue that the increases should not anticipate in Deira and Arjan. New buildings, like those in the Deira Enrichment Project, have been occupied in Deira and the neighboring areas, luring tenants willing to pay higher rates. Since then, this has expanded to older properties where landlords have successfully brought in repairs or high-quality additions. The realtor remarked, “Deira still gives individuals more affordable rental possibilities, and many newcomers to Dubai are building residences there.
Arjan is progressing
Arjan is among the most sought-after areas to migrate to due to the increasing delivery of residences at unexpectedly cheap rental costs. A broad range of price alternatives is accessible as it is also a platform where many owners of just-delivered homes are testing the rental market. According to market sources, Arjan may witness double-digit rate rises in the next 10 to 12 months.
Dubai Bur rents
Notably, rents in Bur Dubai, another of Dubai’s famous historical areas, grew by just 1.3% in September, with CBRE estimating the average rent for a medium-sized property to be Dh63,800. As part of Dubai’s Urban Master Plan 2040, Bur Dubai will undergo many restorations shortly; however, for the time being, the quantity of new constructions hitting the market is meager.
The next substantial surge in Silicon Oasis? One of the top places for young families or single individuals seeking studio or one-bedroom options continues to be Dubai Silicon Oasis. According to CBRE, the cluster recorded a gain of 2.2% for an average of Dh48,518 last month. Similar to Arjan, market feedback suggests that Silicon Oasis rents may also witness additional big hikes in the final weeks of 2022.
