Dubai Rents Continue to Decline

Dubai tenants are experiencing rent decreases for the second month in a row, both for renewals and new leases. Al Barsha saw average rents drop by over 20% in August compared to July-August 2024, according to GCP-Reidin data. For example, 2-bedroom units in Al Barsha are listed between Dh125,000-Dh135,000, with some even closer to Dh100,000. Other upscale locations like The Lakes and Green Community are also seeing drops, while Jumeirah Village Circle (JVC) and The Springs rents have stabilized.

JVC offers stable rents, a welcome change after experiencing significant year-on-year growth earlier this year. 2-bedroom units in JVC range from Dh74,000 to Dh130,000, providing more budget-friendly options. Discovery Gardens has seen rent increases at or below 5%, with many landlords forgoing increases for second-year renewals. However, transaction volumes have decreased in many established communities, possibly due to tenants moving to new buildings or less expensive options in Sharjah.

Dubai Silicon Oasis is an exception, with rents continuing to rise. One-bedroom apartments average Dh60,000, and 2-bedroom units are between Dh80,000-Dh90,000. Other areas like Arjan, Liwan, and The Greens are experiencing declines in rates and renewal volumes. The Palm Jumeirah and Downtown Dubai saw an uptick in volumes.

Some brokers and landlords believe the rent declines are temporary, citing the expected influx of new residents and the city's growing population. This situation will be closely monitored by new property buyers looking to rent out their units.