Rents in Dubai’s budget-friendly locations now see sharp monthly increases

Rents in Dubai’s budget-friendly locations now see sharp monthly increases

Dubai: Rent gains at locations further away from Dubai’s main residential districts are accelerating in the final weeks of 2022, with leases for homes in Jebel Ali up by a sizeable 4 per cent in November alone. The average rent for a relatively new two-bedroom unit is above Dh60,000, and with the possibility of further increases in the first quarter of 2023. Apartments at Motor City too are recording a significant increase in demand, which is reflected in a 2.6 per cent increase in rents month-on-month in November, based on the latest updates from the consultancy CBRE. The average 2-bedroom rental at Motor City, where the master-developer Union Properties announced new offplan launches recently, is at over Dh80,000. (The same trends are in play at the upscale Green Community in Dubai Investments Park, where in November, the hike on new lease agreements was averaging 4.5 per cent.) Dubai’s mid-market locations have picked up the baton when it comes to sharp rental increases, a pattern that started to show up strongly since September as residents - old and new - sought out ways to keep their rental payments in cheque. “Those tenants who could not renew their leases - and thus