Dubai’s real estate landscape has undergone fascinating changes in 2023, especially in the mid-market residential sector. As the city continues to develop, certain neighborhoods are becoming hotspots of rental growth. While iconic destinations such as Palm Jumeirah remain in the spotlight, an unexpected contender has risen to the top: Dubai South. This change has attracted the attention of both investors and residents in search of affordable yet appealing housing options.
The focus is on rent increases:
The year 2023 has heralded a remarkable change in Dubai’s real estate dynamics. According to a recent report by GCP-Reidin, Dubai South, an area that previously flew under the radar, has become the leader in rental growth. This change can be seen in the “Ejari” contracts registered with the Dubai Land Department, which reflect a significant increase in rents of 40%. Palm Jumeirah, a widely recognized hotspot, follows close behind with a growth rate of 20.9%.
Dubai South – An unforeseen competitor:
Dubai South’s rise to the top of the rental growth charts is remarkable. This residential center has quickly gained popularity among those looking for mid-rise living options. As pent-up demand has built up, rents are responding to this increase in interest. This surprising development underlines the transformation of the area from an outsider to a sought-after destination for residents and investors.
Current rental price landscape:
Listings for two-bedroom apartments in Dubai South range from Dh55,000 to Dh80,000, with offers varying depending on the amenities. Rents are higher in Expo Village, which is characterized by larger units. Prospective tenants looking for a one-bedroom apartment can expect rents of between Dh40,000 and Dh55,000, depending on what is on offer. The supply of available apartments has fallen since April/May, which suggests that demand is rising.
Medium-sized municipalities shine:
Dubai’s mid-sized communities have also made a name for themselves in the rental landscape. Locations such as Motor City, Remraam, Green Community at DIP and Dubai Production City feature prominently in the top 10 “Ejari” contracts. Jumeirah Village Circle also stands out from this group. Meanwhile, luxury properties such as Sobha Hartland have worked their way into the top 10 alongside established favorites such as The Palm and Dubai Hills Estate.
A new era for emerging communities:
The rise of Dubai Hills Estate, Meydan City and Sobha Hartland is a sign of a new era in Dubai’s real estate history. These newer communities are showing significant growth and are challenging the established communities. They have successfully left Business Bay and Jumeirah Beach Residence behind, underlining their potential to compete on a bigger stage.
Stability in the midst of growth:
While Dubai’s property prices are showing signs of stabilizing, the upward trend in rents remains robust. This phenomenon is due to a flourishing labor market and the recovery in demand for office space. In view of the influx of new companies entering the market, the rental sector is expected to remain dynamic.
Insights into the rental:
According to the data from GCP-Reidin, the rental landscape is dynamic. In newer communities, there has been a notable growth in studios and four-bedroom apartments. However, older communities have the upper hand when it comes to one-, two- and three-bedroom apartments, which account for a significant 82.45% of all apartment transactions this year.
The real estate scene in Dubai continues to evolve, with unexpected players such as Dubai South gaining traction in terms of rental growth. As the market continues to mature, newer communities are proving their worth against more established counterparts. The synergy between market dynamics and demand is shaping a rental landscape that promises sustainable growth and opportunities for investors and residents alike.
Source: gulfnews.com
