Rental Growth Slowing in Affordable Areas?

Dubai's rental market is showing signs of stabilization, particularly in mid-market and affordable areas. Data from Asteco indicates that rent increases in Discovery Gardens and Sports City slowed to a marginal 1% in the first quarter of 2025 compared to the previous quarter. A one-bedroom apartment in Discovery Gardens ranges from Dh50,000 to Dh80,000, while in Sports City, it's Dh40,000 to Dh85,000. Sports City remains popular for budget-conscious tenants, especially newcomers to Dubai.

Deira also exhibits stable rents, with some marginal declines observed. One-bedroom apartments in Deira average Dh37,500 to Dh90,000. The introduction of Dubai's "smart" Rental Index in January 2025 has contributed to these trends, with older buildings experiencing rent decreases. Newer buildings, especially those near the Deira Reclamation Project, command higher rents.

International City saw a 3% dip in rents between the fourth quarter of 2024 and the end of the first quarter of 2025, with one-bedroom listings ranging from Dh35,000 to Dh65,000. The Rental Index is playing a key role in promoting price stability. Industry sources suggest that the full impact of the new Rental Index will be evident by the end of June or early July.