Since 2014 Real Estate Developers in Dubai has continued to see a decline in rates. This is partly due to the continuing expansion of the emirate and its neighbourhoods into the outlying areas of the city as the urban areas continue to expand. The average annual rental price for a one-bedroom apartment in Dubai Marina was AED113, 000 in 2014, for example. Apartment rental rates in the region have plunged to AED58, 000 by the end of 2019. For the Prime Villas in Palm Jumeirah, a similar pattern can be observed. For an average of AED725, 000 in 2014, a five-bedroom property on the island would have been leased. The average price fell to AED440, 000 by the end of last year. These prices were further affected in the first half of 2020 by the global pandemic. We have seen a further steep fall in rental prices as a result.
The sudden drop in rent prices and the fact that Dubai residents were forced to spend more time at home, and even work from home in many cases, resulted in two key catalysts for post-lockdown people moving apartments. The need for more space is one and the need for a better standard of life is the other. Never has the demand for quality been as strong as it is today. That being said, the region's most respected developers, such as Emaar, Nakheel, and Meeras, have been consistent in offering unique projects that help Dubai grow by providing vibrant high-quality and exciting homes that you can call home. They have put an emphasis on 'community-style living.' The purpose of this new model is to provide owners and tenants with recreational and entertainment opportunities for all kinds of families right where they live, without having to leave their neighbourhoods, with a comprehensive experience.
Both of us were impacted by COVID-19. In Dubai, the turmoil it has created has made homeowners and tenants re-think their lifestyle and future demands. They're moving people! This generates a market with a strong demand for existing and common technologies and undersupply. In some cases, a localized price rise has also been observed in some communities, such as Dubai Hills Land, Arabian Ranches, Emirates Living, Downtown Dubai, Dubai Marina, and Palm Jumeirah. We cannot be sure if this is a "real estate turnaround." The road ahead might have more twists and turns. But we do know that as Dubai struggles to move forward, there are positives in the business. From Dubai, you wouldn't expect anything else, would you?
In the meantime, are you looking for a house in Dubai Developers to rent? Brokers approved by RERA will help you find the right group that fits your budget and needs. That said it is important to select agents with an in-depth understanding of the property rental market in Dubai and the recent changes.