Dubai's popular residential areas are witnessing an increase in new home availability, leading to a slowdown in rising rent prices. This trend is evident in leasing agreements across sought-after communities. Landlords are becoming more realistic in their rental expectations, with actual rates often falling within the lower end of the advertised range. This shift aims to prevent overheating of the property market. Regions with increased property supply, like Meydan and Arabian Ranches 3, show minimal rental rate growth. Limited rental units in areas such as Dubai Silicon Oasis and Jumeirah Beach Residence see higher-than-average price increases. Mid-market neighbourhoods like Jumeirah Village Circle and Dubai South also experience a deceleration in rental price hikes as more options emerge. The Expo Village in Dubai South, conceived for Expo 2020 Dubai, highlights the legacy of this development after the event.
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The availability of new homes in popular residential areas of Dubai is catching up, leading to a slowdown in the increase of rent prices. This trend is becoming more noticeable in recent leasing agreements across different communities and sought-after residential locations in Dubai. There are indications that this trend might be approaching a limit. One way this is evident is through the difference between advertised rental prices and the actual rates at which properties are being leased, as documented by the Dubai Land Department.
The data reveals that both apartment and villa units are frequently being rented at the lower end of the listed rental range, even though they are not explicitly advertised at those lower rates. In essence, landlords are becoming more realistic about their rental expectations. Some experts in the industry had previously mentioned that if rental growth continued at an accelerated pace, the property market could have become overheated.
Regions that have seen substantial increases in new property supply, like Meydan (home to the Azizi Riviera community), Arabian Ranches 3, and Al Furjan, have witnessed minimal or no growth in rental rates, as reported by Asteco.
Even in areas with limited available rental units and restricted tenant movement, such as Dubai Silicon Oasis, Jumeirah Beach Residence towers, The Greens, and Views, there have been only higher-than-average rental price increases.
Additional sources within the industry also point out that mid-market neighbourhoods in the city are also encountering a deceleration in the rate of rental price hikes. As more projects are completed in places like Jumeirah Village Circle and Dubai South (including its Expo Village), more options are emerging for both current and prospective tenants to explore more affordable rental choices for their upcoming 12-month leases.
The Expo Village is a development located within Dubai South, a major urban project near the Al Maktoum International Airport in Dubai, United Arab Emirates. It was conceived to serve as the site for Expo 2020 Dubai, a global event that was originally scheduled to take place in 2020 (but postponed to 2021 due to the COVID-19 pandemic). The Expo Village was designed to accommodate participants, exhibitors, and visitors attending the event.
The village comprises various facilities, including residential accommodations, commercial spaces, and amenities to cater to the needs of the Expo's international participants. The goal was to create a vibrant and self-sustained environment to enhance the overall Expo experience. After the conclusion of the Expo, these facilities were intended to contribute to the legacy of the development, potentially becoming a hub for business and innovation within the larger Dubai South project.
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