Navigating Dubai's Rental Market

About 80% of Dubai residents rent housing, so renting an apartment is the most convenient option for those who stay in the Emirates. In Dubai, tenant rights are highly protected. Landlords are not allowed to overcharge, and tenants are difficult to evict, even after the lease expires. The cost of renting housing in Dubai, as in the world, is almost always indicated on the site for the year. This is because housing is usually rented under a contract.

Current Trends in Dubai's Rental Market

Dubai is becoming a destination for wealthy people worldwide due to the highest quality of life that the emirate offers, despite the climate's peculiarities. The Dubai government strictly ensures that investors' interests are protected as reliably as possible, constantly introducing new amendments and changes to the legislation to eliminate various manipulations that lead to investor disappointment. 

Dubai's undeniable advantages over many other markets are transparency, simplicity, and the speed of completing real estate transactions. Investors constantly receive new opportunities and privileges under the state's protection.

Shifts in Demand

Population growth significantly impacts the demand for real estate in Dubai. As the population grows, a bedroom apartment becomes more in demand for locals and foreigners.

Economic expansion, GDP performance, employment levels, and business prospects all impact bedroom apartment demand for Dubai real estate. Investors are attracted, and a booming economy boosts confidence in the Dubai Hills estate with strong growth. Although Dubai has expanded its economy beyond oil, the real estate market is still indirectly dependent on oil prices.

Property Types and Features

Dubai is the center of the emirate of the same name and the most populated city in the country. Real estate is being built here for every taste and budget. The following types of real estate are distinguished in the country:

• Flats and apartments. The Dubai apartments are purchased for rent but can be used for permanent residence. This type of property is designed to generate income.

• Penthouses and duplexes. A duplex is an apartment located on two floors at once. They are mainly located in houses with few stories for living in the Dubai. The penthouse also has two floors with stairs but is always located on the top floors of skyscrapers.

• Villas and townhouses. Villas belong to the executive class. Designer renovations, impressive areas, and sustained concepts for villas distinguish them. Townhouses are designed for the one-time residence of several families. The building has several entrances from the street, which will allow you not to intersect with neighbors.

• Residential complexes. The residential complex on the property market is characterized by a common architectural concept that unites one or more residential buildings.

Average Rental Prices in Dubai

Renting an apartment in Dubai is the most acceptable option for foreigners who plan to stay in the UAE for a long time. Prices for rental housing in Dubai are indicated on the website for the year. This is because the premises are usually rented under a contract. If a traveler wants to know the average rent they will have to pay per month, they will need to divide the average annual price by 12.

Rent is not paid monthly. You need to pay for accommodation once a year, every six months, or once a quarter.

Overview of Price Ranges

The rental price for expats depends on several factors. The season plays one of the most significant roles. In the summer, the real estate market experiences a downturn, resulting in cheaper holiday prices in Dubai compared to autumn and winter.

In the summer, you can find a one-room studio apartment for an average rent of about $30,000, which is the minimum price. In autumn-winter, when renting an apartment for expats for a long time, you will have to immediately pay the rental costs of about 9,220 dirhams ($2,526).

Factors Influencing Rental Prices

The rental price is increased by the area of Dubai where the apartment or villa is located. The prices of apartments in Dubai are in tourist areas close to the sea and the main attractions. The rent cost, including daily rent, is much lower in residential areas and on the city's outskirts.

In-Demand Neighborhoods for Expatriates

Whether you're looking for vibrant city life, a laid-back beach style, or a quiet and green oasis, Dubai has the property for every type of expat.

Dubai Marina

The most popular Dubai Marina offers everything you can imagine on the Dubai rental market: a large entertainment complex, outdoor dining, and, of course, a perfect coastline. Given the area's popularity among British expats, there are even schools that follow the British curriculum.

Downtown Dubai

Downtown Dubai attracts expats and tourists with a variety of shops. The area has everything from the planet's largest shopping and entertainment center to a lively and authentic rental market in Dubai. Residents can go shopping, have fun, and chat with friends at any time of the day.

Jumeirah Village Circle

This area is located across the street from Dubai Marina. Skyscrapers are located around artificial lakes at the Jumeirah village circle. There are both hotels and apartments in the area. Everything is done well — transport infrastructure, an abundance of restaurants and cafes, a general view. It is a calm and beautiful area to live in Jumeirah village circle.

Preferred Neighborhoods Among Locals

Skyscrapers in Dubai are built exclusively for tourists and expats and are rarely used as permanent housing for indigenous people. Local families — at least three generations — live in large houses, with the whole family of several dozen people under one roof. The houses of residents, contrary to misconceptions, are located in new, usually undeveloped areas far from the sea. There are no shops, malls, or schools within walking distance. But most villas on the first coastline are usually rented to the same expats and tourists.

Jumeirah

This is one of the areas popular with the locals. Jumeirah is a rich area with the most elite infrastructure, entertainment, and seaside recreation. There are many attractions there. A mosque built at the end of the last century stands out. Any tourist can visit it, regardless of nationality and religion.

Arabian Ranches

It is a luxurious desert-themed area close to the center of Dubai. There are luxury apartments and villas to rent, schools, golf and polo clubs, spas, a shopping center, and restaurants. In this vast wilderness area, expats can live at their own pace, away from the monotony of city life.

Families love this place, as there is peace and tranquility here. The area has a variety of detached villas and houses ranging from two to six bedrooms to suit the needs of both small and large families.

Considerations for Renters

As in the rest of the world, in Dubai, all real estate transactions are concluded with the help of real estate agencies. Real estate agents are market experts with the latest information about the industry who can help with the purchase or sale of real estate and the search for a tenant or renter.

You can prepare a list of rental areas in advance. During a personal meeting with an agent, you will be able to discuss all the details and nuances regarding the search parameters and conclude an agreement, which will additionally indicate the commission for services. Next, the agent will select the most suitable apartments based on your preferences.

Legal and Contractual Aspects

A legal real estate lease agreement must be registered with Ejari in Dubai. The contract should clearly state the responsibilities of the landlord and tenants. Once registered with Ejari, the landlord cannot change the contract.

Only your agent or you can register a contract with Ejari. To do this, you must either fill out a form on the official website of Ejari or apply online. Ejari guarantees that agreements between both parties are transparent and fair.

Negotiating Rentals

Discuss with the agent or property owner all the contract terms, in which cases it is possible to reduce or increase the value. For example, the owner can sometimes give up the price if you make an annual payment in a few checks. Specify the duration of the contract, its format, the amount of the deposit, and the total rental costs.

Next, carefully study the documents confirming the ownership of the landlord and make a refundable deposit, which is 5-10% of the rental price.

Tatyana Kirichenko

Property Manager

Tatyana has been working in Dubai real estate since 2007 and has accumulated a l… More

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