Dubai : The rental market in Dubai’s affordable residential areas is showing signs of stability, with Discovery Gardens, Deira, and Sports City witnessing moderate or minimal rent hikes. However, Jumeirah Village Circle (JVC) continues to see significant rental increases, maintaining its status as one of the city's most sought-after mid-tier communities.
Affordable Areas See Stabilized Rents
According to a new report from Asteco, areas such as Discovery Gardens and Dubai Sports City are experiencing more balanced rent increases compared to previous years.
Discovery Gardens
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Current annual rent for a one-bedroom apartment: Dh60,000
- Average rent in 2023: Dh52,500
- Average rent in 2022: Dh42,500
- Projected increase: Around 5%
This moderate rise in Discovery Gardens is attributed to increased supply and tenant-friendly policies, such as Dubai’s new digital Rental Index and star rating system for buildings, which limit excessive rent hikes.
Dubai Sports City
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One-bedroom apartment average rent (2024): Dh55,000
- 2022 average: Dh52,500
- Trend: Marginal rent increase
Rental growth in Dubai Sports City has been relatively steady, with upcoming new residential supply in 2025 expected to further moderate prices.
Dubai’s New Rental Index Reshapes Market
Dubai’s introduction of a star rating system for residential buildings has impacted how landlords adjust rents. Each building is assigned a rating from 1 to 5 stars, influencing how much rents can be raised.
According to real estate experts, lower-rated buildings are facing pressure to keep rents stable or invest in upgrades to justify increases.
Deira Rents Hold Steady
- One-bedroom apartment: Dh50,000 per year
- Two-bedroom apartment: Dh75,000 per year
- Annual increase: Dh2,000–Dh2,500
Deira remains a tenant-friendly area, with many lease renewals limiting new rental listings. However, newer buildings in Deira command higher rates.
Leasing agents note that areas such as Al Nahda and Al Ghusais offer more rental options, but at higher prices, with potential for future rent increases.
JVC: A Different Story, with Soaring Rents
Once known for affordable rentals, Jumeirah Village Circle (JVC) has seen some of Dubai’s sharpest rental increases over the past two years.
- 2021: One-bedroom apartment rent: Dh40,000
- 2024: One-bedroom apartment rent: Dh65,000
With many new, well-maintained properties in JVC, landlords are demanding higher rates, making it less attractive for budget-conscious tenants.
Outlook for 2025: More Supply, More Stability?
With new residential projects set to enter the market in 2025, real estate analysts expect rental growth to slow down in key areas. The Dubai Rental Index and star rating system are also expected to help tenants negotiate better rental agreements.
For now, areas like Discovery Gardens and Deira continue to offer stable, budget-friendly rental options, while JVC remains an outlier with consistently rising rents.
