Residential rents in Dubai rose by an average of almost 50 per cent during the last two years, according to property consultants CBRE. While apartment rents across the emirate surged 21 per cent in 2013, villa rates grew by 10 per cent.
But the trend is changing, with the latest property reports indicating that the rate of rental growth declined to one per cent quarter-on-quarter in Q3 2014.
“Rents are experiencing a slowdown in certain areas. For instance, in Jumeirah Lake Towers, apartment rents fell by 4.6 per cent between June and August,” said Michael Lahyani, CEO and founder of propertyfinder.ae.
“Similarly, if you are looking to get a foot on the property ladder, house prices are likely to slow further in the coming months.”
However, despite a drop in rents, current housing costs in the emirate equal that of Manhattan, research from Dubai website Dubizzle showed.
Rising rents coupled with a burgeoning cost of living have also triggered a relocation from the prime communities in Dubai to affordable areas in the emirate or even as far as Sharjah and Ajman.
For a person currently looking to rent a house in Dubai, here are the top five most affordable areas, as revealed by propertyfinder.ae. The listing is based on the average median rents across both villas and apartments.
1. International City
International City, a cluster of residences located off the Dubai-Hatta road, has emerged as the most affordable area in Dubai. The median rent for the apartment units in the community is Dhs42,000. The district also features a range of shops offering essential community services and stores and the much-larger Dragon Mart.
2. Discovery Gardens
The residential community that is situated in Jebal Ali consists of six themed districts and is close to busy freezones such as Dubai Media City and Dubai Internet City. The median rent for housing units in the area is Dhs58,500. Major retail destinations in the area include Ibn Battuta Mall and the newly opened community mall by developer Nakheel.
3. Dubai Silicon Oasis
A residential community off Emirates Road that co-exists with a business park, Dubai Silicon Oasis features a number of educational facilities and other community and retail centres. The median rent for apartments in the development stands at Dhs60,000.
4. Dubai Investment Park
The area offers residents a wide selection of accommodations ranging from different styles of villas and townhouses to apartments and staff quarters. The median rent for residential units here is Dhs65,000.
Master development Dubailand includes communities such as Motor City, Dubai Sports City and The Villa and features a mix of both apartments and villas. The residential units are complemented by a host of retail centres, leisure options and educational institutions. The median rent for all housing units at Dubailand is Dhs65,000.