The updated Dubai Rental Index announced on Saturday will bring welcome relief to cash-strapped tenants. For those who may have been paying inflated rents, this is their chance to renegotiate with landlords and bring their rents down to the market average – or upgrade to a posher locality or larger units. There is also more supply coming to the market, which will further weigh on rents.
In the ever-growing city of Dubai, the suburban effect is also currently underway. Tenants in search of bigger living spaces at affordable prices are moving away from established communities along the Sheikh Zayed Road corridor to those along the Mohammed Bin Zayed Road and Al Qudra Road.
Due to an increasing number of new buildings being handed over, Dubailand, Al Warqa, Dubai Silicon Oasis, Al Furjan and JVC have emerged as locations preferred by mid-income families.
“Communities such as Mira, Mudon and Nshama offer affordable rates compared to their more established counterparts on Sheikh Zayed Road. For example, a rental comparison between two Emaar villa communities on opposite corridors – the Springs and Mira – reveals a 22 per cent discount for the latter which is located on MBZ Road. We expect there to be a greater movement towards the outskirts of Dubai as more suburban communities develop,” reckons Hussain Alladin, head of IR and research at Global Capital Partners.
Other popular affordable communities for mid-income families are International City, Discovery Gardens, Al Nahda and Al Qusais.