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Most affordable areas in Dubai for tenants revealed.
Al Nahda, Jumeirah Village Circle and Bur Dubai are the most affordable areas for Dubai tenants, while International City and Dubai Marina offer the best rental yields to investors.
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According to a new study released on Tuesday, the average annual rent for a studio in Al Nahda is around Dh28,000, while a one-bed apartment costs around Dh36,000 and two-bed around Dh47,000.
Jumeirah Village Circle also remains a popular choice for budget-conscious tenants in 2020. The average rent for a studio apartment in JVC is Dh30,000, while one-bed and two-bed units cost Dh46,000 and Dh67,000 per annum, respectively.
Data from Bayut and Dubizzle suggests that in Bur Dubai, studio, one-bed and two-bed apartments cost around Dh36,000, Dh49,000 and Dh67,000, respectively.
Investors
From an investors’ perspective, International City offers an average return of 8.5 per cent. It remains the best option for investors keen on purchasing ready affordable apartments with high return on investment (RoI).
Dubai Marina has also been yielding a healthy RoI of 6.2 per cent for buyers interested in the luxury segment. In the villa segment, Jumeirah Village Circle offers best rental returns of 5.9 per cent and properties in Arabian Ranches offer an average RoI of 5.5 per cent.
Haider Ali Khan, CEO of Bayut and dubizzle, said interest in the Dubai real estate sector remains “consistently high”.
“Dubai has been able to stay resilient, in large part due to timely measures from the government, including the stimulus plans and deferred payments for off-plan buyers,” he said.
Bayut and Dubizzle said in their annual Dubai real estate report: “The sales and rental markets in the emirate have shown a high level of tenacity, with price reductions staying in line with the patterns observed in 2018 and 2019. Despite early forecasts during the height of mobility restrictions that prices would fall by much higher margins, the market has quickly recovered with price reductions largely being in line with the trends seen across the previous two years.”
Fibha Ahmed, director of sales at Bayut.com, said initial analysis during Covid-19 expected price drops of around 20 to 30 per cent, but the market quickly recovered.
“Appetite has stayed steady in the market despite the pandemic … A lot of first-time owners are stepping into the market. Prospective buyers and tenants in search of affordable housing have turned to the suburbs of Dubai, including Jumeirah Village Circle and Dubailand,” she said during the launch of the report on Tuesday.
waheedabbas@khaleejtimes.com
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