As rental prices skyrocket, Jumeirah Village Circle is becoming increasingly popular among renters

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People looking to rent a property in Dubai are choosing to live in Jumeirah Village Circle (JVC) amid the growing price of rental units. This area has become the most popular place to live among tenants looking for affordable housing in Dubai.

However, according to Bayut and Dubizzle, rental costs are also increasing in JVC at a rate that ranges from 7% to 16%. The average price for a studio is AED 34K (USD 9K), per year. One-bedroom apartments were priced at AED 48K (USD 13K), and two-bedroom apartments were priced at AED 70K (USD 19K).

The report also showed a 21% increase in cost for moderately priced apartments in some of Dubai’s most popular areas, such as Al Nahda, Bur Dubai, Business Bay, and Deira, and prices for high-end apartments rose by 43%.

Haider Ali Khan, chief executive officer of Bayut & dubizzle and head of EPMG MENA, said that in H1 2022, several changes took place in the region and all over the world, and due to the fact that Dubai is known for its safety and security, it remains one of the best options for foreigners looking to move to the emirate or make a profitable investment. He also mentioned that over 35M sessions with property seekers, interested in Dubai, took place at Bayut & dubizzle.

The area of Mirdif offers the most affordable villas with rental prices increasing by only 7%. In DAMAC Hills 2, the price for three-bedroom units has largely remained the same, while four- to five-bedroom villas have seen a rise in rental costs.

Potential tenants are looking at rental units in Dubai’s most prominent neighbourhoods, with Dubai Marina and Al Barsha being particularly popular. Thus, rental costs in Dubai Marina have risen between 16% to 22% over H1 2022. One-bedroom apartments in Dubai Marina had an average price of AED 88K (USD 24K), per year. Four- to five-bedroom units in Al Barsha had gone up by 15% and had a starting price of AED 74K (USD 20.1K), per year. In turn, Downtown Dubai continues to attract tenants even despite the increase in rental prices. The average rental rate for a one-bedroom apartment in Downtown Dubai was listed at AED 105К (USD 29К), per year, which is up 15.53%, and two-bedroom units had a cost of AED 222К (USD 60К), per year, which is up 43% from previous levels.

As for villa rentals, the Jumeirah area is a popular destination that is known for having premium properties. Three-bedroom villas had an average price of AED 200K (USD 54.5K), per year, which is an increase between14% and 17%. Other sought-after areas among villa seekers include Dubai Hills Estate, Umm Suqeim, and Arabian Ranches.

Due to the fact that real estate prices in Dubai fell by 0.31% in July, for the first time in a year, the emirate has become even more popular in terms of investment. Units in Dubai Sports City showed an 8.04% growth in yields, while ROI in Dubai Marina and DAMAC Hills reached 6.97% and 6.53%, respectively. Units for sale in the Dubai Marina area had an ROI of 6.9%, which continues to be popular among investors looking for a premium property to rent out. Jumeirah Village Circle continues to be a leading option among those looking for affordable real estate in Dubai. Residential properties in JVC are offered at affordable prices, and the area boasts a high ROI, with one-bedroom units having a return rate of 7%.

Additionally, the Portman by Ellington Properties, a new project in Jumeirah Village Circle, was recently launched. The 16-storey building has studios and one- to two-bedroom apartments, and units are available through a 70/30 payment plan with a 20% down payment, making the purchase of luxury real estate accessible to a wider audience of buyers.

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