When looking into the current market for apartment rentals in Dubai, the word “value” comes to mind. Compared to other global centres like Hong Kong or London, living costs in this city are far lower. Price movements, however, are not constant. Duabi apartment rentals range from AED 18,000 (about $30,000) per month to AED 1 million (approximately $400,000) per month.
Trends in rental costs are affected by variables like location and unit size. For a studio, the annual cost might be anything from AED 25,000 to AED 80,000. Additional 2 bedroom apartments can be found for between AED 35,000 and AED 250,000 per year. In addition, the annual cost of a three-bedroom apartment ranges from about AED 60,000 to AED 700,000.
Last but not least, there is an abundance of larger apartments, the price of which varies depending on view and location.
It comes down to how much time and money you have. A furnished apartment costs a lot more than one that isn’t, but it’s easy to find furniture at a good price in stores all over the Dubai. But if you only plan to stay in Dubai for a year, you might want to go with an unfurnished apartment because it will be easier to move in and out.
Most companies in Dubai give their employees housing or money to pay for housing. With so many options, it can be stressful to look for your own place to live, so many expats choose to use an agent.
Average Apartment Rent in Dubai per Year
Apartments on the high end of the market Properties with less value Apartment with one bedroom: 96,670 AED (26,320 USD) 56,200 AED (15,300 USD) (15,300 USD) Apartment with two bedrooms: 140,000 AED (38,115 USD) 79,000 AED (21,510 USD) (21,510 USD) 190,000 AED (51,725 USD) for a three-bedroom apartment. 105,000 AED (28,585 USD)
Average Housing Rent in Dubai per Year
The annual rent for a house in Dubai is 193,180 AED (52,590 USD) for a property with three bedrooms, and it is 298,640 AED (81,300 USD) for a home with five bedrooms. Some expats decide to rent a villa or house in Dubai rather than buying one.
A comparison of 5 cities with the most expats of average rental prices
| City | 85 m2 (900sqft) furnished in expensive area | 85 m2 (900sqft) furnished in normal area | 45 m2 (480sqft) furnished studio in expensive area | 45 m2 (480sqft) furnished studio in normal area |
|---|---|---|---|---|
| Dubai | Dirham 9,252 ($2,519) | Dirham 6,668 ($1,816) | Dirham 5,614 ($1,529) | Dirham 3,274 ($892) |
| New York | Dirham 25,215 ($6,866) | Dirham 15,594 ($4,246) | Dirham 13,955 ($3,800) | Dirham 8,685 ($2,365) |
| Hong Kong | Dirham 22,305 (HK$47,511) | Dirham 16,600 (HK$35,360) | Dirham 13,227 (HK$28,175) | Dirham 8,757 (HK$18,653) |
| London | Dirham 13,658 (£3,127) | Dirham 8,719 £1,996 | Dirham 7,791 £1,784 | Dirham 5,576 £1,277 |
| Sydney | Dirham 9,414 (AU$3,825) | Dirham 6,242 (AU$2,536) | Dirham 6,377 (AU$2,591) | Dirham 4,623 (AU$1,879) |
| Amsterdam | Dirham 9,188 (€2,413) | Dirham 7,327 (€1,924) | Dirham 5,729 (€1,505) | Dirham 5,363 €1,409 |
Why are Dubai rents at an all-time high and rising faster than ever?
Dubai Residential Property Rent Price Index increased by 1.78 points, from 88.79 to 90.57, which represents an increase of 2.00% in October 2022. Prices also increased 27.30% y-o-y. Read the full article here How is the real estate market in Dubai.
According to CBRE Group Inc., a real estate consultant, the average annual rent for a villa or family home in the emirate reached 268,758 dirhams ($73,171) last month. This was after prices rose 26% in the year up to September.
The average rent for an apartment went up 27%, to 89,986 dirhams.
“The number of expats is making Dubai rents go up.”
Taimur Khan, the head of research at CBRE, says that the rise in rental prices is due to more expatriate workers moving to the city.
It’s also a reflection of the fact that prices for luxury homes have gone up by 89% in the past year, as a property consultant named Knight Frank said earlier this week.
Rents aren’t the only thing going up in Dubai. According to CBRE, the average sale price for villas went up 14%, while apartment prices went up 9%.
The CBRE says that the most affordable place to rent a villa is in Deira, where the average rent is AED112,737, which is still a 3.5% increase. Upscale Jumeirah, on the other hand, saw a 4.8% rise (to AED500,635).
But CBRE said that Dubai’s attractiveness could be hurt by its fast growth.
“The rate of growth in some types of homes and neighbourhoods could start to have a big effect on how affordable the city is,” Khan said.
“This, in turn, could hurt its competitiveness and have a negative effect on other sectors, especially in a time when living costs are high and the world economy is weakening.”
Demand to buy and rent homes in Dubai is going through the roof because of how the government is handling the pandemic and how easy it is to get a visa.
The emirate’s real estate market is getting a boost from the influx of newcomers, such as bankers escaping strict Covid restrictions in Asia, crypto investors, and wealthy Russians fleeing their sanctions-hit country after its invasion of Ukraine.
