Four Dubai residential areas with the lowest rent increases this year

There are still some pocket-friendly neighbourhoods, despite soaring prices across the city

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Rental prices in many residential areas of Dubai have been increasing in the past year.

Average rents for apartments rose 4 per cent from the first quarter of 2022, while villa rents increased 6 per cent, according to property consultancy Asteco.

But there are neighbourhoods in the emirate that have not seen a significant rise in rent compared to the more prime locations such Palm Jumeirah, Dubai Hills and Dubai Marina.

Muhammad Saad, property consultant at Aeon and Trisl Real Estate Brokers, said residential districts on the outskirts of the city are becoming popular.

“Given the hike of rents in many residential areas, especially ones that are in close to integral parts of Dubai, many residents are eyeing a move to the outskirts of the city and to areas away from the hustle and bustle of Dubai,” he said.

“With the government's initiative of upgrading the entire city's infrastructure and for people living away from the city having easy access to schools and hospitals, this trend may continue for the foreseeable future.”

Here, Mr Saad highlights some of the top areas in Dubai that have seen the least increases in rent this year.

Dubai South

Even though there is still some construction happening in this area, Dubai South offers attractive apartment rents for those looking to live closer to the Expo 2020 site and Dubai World Central airport.

Studio apartments are as low as Dh20,000, while some two-bedroom flats are going for up to Dh55,000, depending on the size and location.

NAIA Tenora, a 10-storey, 270 unit tower, will be the first luxury serviced hotel apartments to be opened within the Dubai flagship project, Dubai South. Photo: Damac Properties

“Despite Dubai hosting the Expo this year, annual rents have not seen a significant increase in Dubai South,” Mr Saad said.

“The community is still not fully ready with construction taking place in most parts of the area.

“I do, however, expect things to pick up over the next couple of years with the expansion of Dubai's master plan.”

There are also townhouses in the area that are priced low, with two-bedroom units for Dh45,000 to Dh55,000.

Dubai Production City (IMPZ)

There is not a lot of development in this area, so rental prices have not seen a significant rise.

But residents have access to facilities in nearby neighbourhoods such as Jumeirah Village Triangle and Dubai Sports City.

Studio apartments are going for as low as Dh22,000, many one-bedrooms start at Dh30,000 and two-bedrooms are between Dh40,000 to Dh55,000.

“Despite being a well-located community, IMPZ has not seen a drastic hike in rent and that is only down to one reason — lack of development in the community,” Mr Saad said.

“With its neighbouring communities being at least 20 per cent higher in terms of rental values, IMPZ lacks the infrastructure that many places in Dubai have.

“It is, however, on the verge of developing into one of the finer communities. It also boasts one of the popular shopping malls in the UAE called City Centre Me'aisem.”

There are no villas or townhouses in this neighbourhood, but it is close to the Jumeirah Golf Estates.

Damac Hills 2

This residential district has become popular over the past two to three years for its low rents on apartments and townhouses.

Even though there has been an increase in rent in this area, it still offers affordable prices, with a three-bedroom townhouse going for Dh60,000, up from Dh45,000 last year and the year before.

Rents for studio apartments start at Dh20,000 and go up to Dh80,000 for three bedrooms.

There has also been a lot of development in the area and residents now have access to hypermarkets, pharmacies and a few restaurants.

“What used to be considered a community in the middle of nowhere is now a suburban oasis that gives its residents a unique lifestyle,” said Mr Saad.

“Damac Hills 2 now has a great community centre, which features everything from restaurants to pharmacies and hypermarkets.

“With its recent addition of food trucks and a floating cinema, residents of the community need not look to leave the gates for all their daily necessities.”

International City

This neighbourhood has been a popular choice for bachelors, families and business owners for many years.

It was always known to have affordable rental prices and continues to cater to those who are looking for pocket-friendly deals.

Located near Dragon Mart, the area has plenty of restaurants and shopping centres.

DUBAI, UNITED ARAB EMIRATES, 30 APRIL, 2015. Stock photography of apartment buildings in International City developed by Nakheel. (Photo: Antonie Robertson) Journalist: STOCK. Section: Business. *** Local Caption ***  AR_3004_Stock_International_City09.JPG

“International City has seen many changes in rental prices but the community has matured and has seen a steady value of rent,” said Mr Saad.

Studio apartments are priced at Dh19,000, one-bedrooms start at Dh28,000, two-bedrooms at Dh40,000 and three-bedrooms are going for Dh68,000 to Dh85,000.

Al Warsan Village in International City has seen a rise in tenants over the past two years.

It has three-bedroom townhouses, with rents currently ranging from Dh80,000 to Dh90,000.

They are spacious and close to all the restaurants, clinics and hypermarkets in the area.

Updated: October 12, 2022, 3:00 AM