Dubai: attractive areas for rental housing

According to analysts, rents will continue to rise until at least the end of the year - although certain factors could slow their growth. However, there are still plenty of lucrative opportunities available to real estate investors.
The most profitable areas for renters are known:
Bur Dubai;
Jumeirah Village Circle (JVC);
DAMAC Hills 2 (DAMAC Hills 2);
Mirdif.
For renters looking for luxury housing, city center areas are in greatest demand. First of all this:
Dubai Marina;
Business Bay;
Dubai Hills Estate;
Al Barsha.
In the apartment segment, among areas with relatively affordable rentals, Jumeirah Village Circle (JVC) is in greatest demand. In the first half of 2023, apartment rents here have grown in the range of 15% to 18%, depending on the specific residential complex.
Expensive apartments are most often rented in the Dubai Marina area - it is this area that is in greatest demand based on the results of the first quarter of 2023.
The average annual payment for an expensive apartment here was 104.8 thousand AED ($28.53 thousand), showing an increase of 7.01%. The rise in already high prices may be due to the fact that landlords are in high demand and charge inflated prices, analysts say.
Among tenants looking for affordable villas, the area in greatest demand is DAMAC Hills 2.
Here, the average annual rent for an inexpensive villa is 70.9 thousand AED ($19.30 thousand) - the rent growth was 11.8%. This rapid rise in rental prices for four-bedroom villas is associated with the emergence of several elite residential areas in the area - Casablanca Boutique Villas, Acuna and Mulberry. Due to high prices in new projects, the average price of four-bedroom villas in DAMAC Hills 2 has increased sharply.
Finally, among areas with expensive villas, tenants most often choose Dubai Hills Estate. Here, the average annual rent is 261.3 thousand AED ($71.14 thousand), the rent growth was 1.96%.
This increase in average rent for six-bedroom villas is due to the emergence of the Golf Place and Fairway Vistas projects in the area. Many wealthy buyers turned out to be investors and began to rent out villas after purchasing them - hence the jump in average rent.
Experts do not predict a quick decline in rental prices - rather, on the contrary. However, at least one innovation developed by DLD may make a difference. In order to regulate prices, it was decided to replace the current rental index with a rating system.
If previously the index was determined mainly by the location of the object, now it will be compiled based on user reviews. People will evaluate various aspects of living in a building (say, the convenience of local amenities) and give ratings ranging from one to four stars.
In buildings with a high rating, landlords will be able to increase the rent as much as they want. But for buildings with a low indicator, you will have to go to the Real Estate Regulatory Authority for permission.
Experts believe that the new system will not stop price increases, but may slow it down somewhat. At least in the apartment segment. After all, there are no plans to introduce a new index in the villa segment yet.