Over the past two months, more areas in Dubai are experiencing rent decreases—including the more budget-friendly residential neighborhoods.
This trend applies to studio and 1-bedroom apartment rents as well, following the enforcement of regulations against subletting and splitting by Dubai authorities and landlords.
International City
International City, known for its subletting opportunities, has seen stable rents over the past two months.
Currently, 1-bedroom units are listed at an average of Dh48,000-Dh55,000, according to Bayut listings. Studios in International City are going for Dh28,000-Dh29,000, but leasing agents note that some are available for less.
Discovery Gardens
At Discovery Gardens, studio apartments are priced between Dh48,000 and Dh60,000, while 1-bedroom units have rental prices of Dh50,000 to Dh105,000. Rents in this popular mid-market residential area of Dubai have dropped by 1% over the past two months.
“The enforcement against partitioning and subletting in Dubai hasn’t yet reflected in the real estate data—at least not yet,” stated Eima Hajimalan, manager at GCP Properties.
“Even with rising demand for studios and 1-bedroom apartments, rental prices will still be determined by the building’s rating in the Dubai Rental Index. There’s no indication that rents for these types of properties are going up.”
"Actually, over the past two months, rents have been decreasing in more areas of Dubai, except for villas in Palm Jumeirah."
"Many people impacted by the need to find new rental options due to the crackdown may be looking for properties in Sharjah or other emirates."
Off-plan prices are also decreasing—with 'discounts.'
As per property market sources, property prices and rents in Dubai are gradually falling from their peaks in 2024 or Q1-25. Even when off-plan launch prices are high, developers are providing 'discounts,' fee waivers, and easy payment options.
However, rental rates show more signs of stability or cooling.
“Over the last 3 months, rents for studios and one-bedroom apartments have stabilized, with not much increase in new contracts,” stated Aakarshan Kathuria, CEO of RiseUp, a property agency.
"Yes, there’s still an increase in renewal prices compared to last year. But for new contracts, rents have remained consistent over the last 3 months."
The recent tightening on subletting will certainly create new demand for affordable options.
“But it’s improbable that all tenants forced to move due to the crackdown will seek new properties in the same area,” mentioned a leasing agent.
"There simply aren't enough vacant options available. So this demand will be spread throughout the city, and many may move to areas like Deira, Al Nahda, Al Quoz, Jebel Ali, and Sharjah."
