Dubai and Abu Dhabi apartment rents down in July

Apartment rents in Dubai and Abu declined an average of 2 per cent and 6 per cent respectively in July from the first half of the year, according to Bayut.com.

In its monthly report, the property site said the average rent for a Dubai studio apartment last month stood at Dhs57,000, down 6 per cent year-on-year.

One-bedroom unit rents fell a similar 7 per cent compared to the previous year to average Dhs92,000, while two-bed rents declined 3 per cent to Dhs145,000 and three-bed rents were down 5.4 per cent to Dhs206,000.

Four-bedroom apartments averaged a monthly rent of Dhs304,000, 2 per cent down from the first half of the year.

Top localities for renting apartments in Dubai in July (Bayut)
1. Dubai Marina
2. Jumeirah Lakes Towers (JLT)
3. Downtown Dubai
4. Bur Dubai
5. Dubai Silicon Oasis

Top localities for buying apartments in Dubai in July (Bayut)
1. Dubai Marina
2. Jumeirah Lakes Towers (JLT)
3. Downtown Dubai
4. Palm Jumeirah
5. Business Bay

In Abu Dhabi Studio rents declined 5 per cent year-on-year for July to Dhs56,000, one-bed declined 6 per cent to Dhs91,000, two- and three-beds were down 4 and 5 per cent to average Dhs 129,000 and Dhs172,000 respectively.

Meanwhile four-beds were down 4 per cent to DHs 247,000.

Top localities for renting apartments in Abu Dhabi in July (Bayut)
1. Al Reem Island
2. Al Raha Beach
3. Khalifa City A
4. Al Muroor
5. Al Khalidiyah

Top localities for buying in apartments Abu Dhabi in July (Bayut)
1. Al Reem Island
2. Al Raha Beach
3. Al Reef
4. Saadiyat Island
5. Al Ghadeer

Despite the declines, Bayut said average yields in both emirates remained attractive, at 5.6 per cent and 7 per cent respectively.

“Though rents have seen periodic adjustments, Bayut believes the UAE’s unique selling propositions such as a highly smart, diversifying economy, security of investment and the great promise of Expo 2020 will keep the real estate and its allied sectors thriving in the months to come,” the company said.

Earlier this month, property consultancy CBRE said Dubai real estate prices dropped for the sixth straight quarter in Q2.

Read: Dubai property prices drop for sixth consecutive quarter

Declining Abu Dhabi sales and rental prices were also noted by the firm and rival JLL in reports last month.

Read: Lower oil prices, job cuts hit Abu Dhabi property market