Exclusive Report: Dubai’s Residential Rental Index Change 2018- 2019


Over the past 12 months we’ve seen dramatic developments in UAE legislation. The introduction of VAT was a big game changer to the country as was the Government's incentive for 10-year residency visas with 100% ownership of companies outside free zones, and not forgetting retiree visa options. Rental prices continued to fall throughout the year as per Dubai Land Department Rental Index 2019, and so, based on these profound initiatives and market trends, we have taken it upon ourselves to once again produce The Index here: “fam Rental Index 2019” so as to provide better insights.

The new rental index has introduced new property types like two, three, and four bedroom duplexes, four and three bedroom townhouses, four bedroom penthouses, three superior bedrooms, and one plus bedrooms. However, most of them have not been assigned a rental value but, this is promising as it gives an indication of more accurate pricing becoming available in the near future.

1.  Rental change in Dubai’s hottest areas

Some of Dubai’s hottest areas have seen a decrease in price from 2018 to 2019. For example, Arabian Ranches 2 has the highest rental decrease among all the city’s most popular destinations. This is followed by Dubai Marina, Downtown Dubai, and Business Bay, of which revealed to have had a decrease in rental prices for two bedrooms and having - 8.57%, - 6.79% and - 5.51% in chronological order.

For example, if you’re looking into renting out in Business Bay for a two-bedroom apartment now, the rental price in Al Habtoor City is AED 150,000. So, you might be able to rent it out for an average of AED 120,000, as per the current listing prices.

Palm Jumeirah will see the lowest rental price among the top 5 areas, with average rent in 2018 decreasing from AED 174,000 to AED 166,000 in 2019.

Area Name Bedroom Average Rent in 2018 (AED) Average Rent 2019 (AED) Percentage Change
Arabian Ranches 2 Three bedrooms 191,000 173,000 -9.42 %
Dubai Marina Two bedrooms 140,000 128,000 -8.5%
Downtown Dubai Two bedrooms 162,000 151,000 -6.79%
Business Bay Two bedrooms 127,000 120,000 -5.51%
Palm Jumeirah Two bedrooms 174,000 166,000 -4.6%

2. Areas with the highest rental increase


Area Name Bedroom Average Rent in 2018 (AED) Average Rent 2019 (AED) Percentage Change
Al Mankhool Two bedrooms 90,000 148,000 64.44%
Ras Al Khor (Samari Project) Three bedrooms 64,000 87,000 35.94%
Ayal Nasir Three bedrooms 67,500 83,000 22.96%
Umm Al Sheif Five bedrooms 257,500 305,500 18.64%
Dubai Culture Village One bedroom 66,000 78,000 18.18%
Dubai Residence Complex - Dubailand One bedroom 52,000 58,000 11.54%


For some of Dubai’s prime residential sub areas, they have seen some of the highest rental increases this year. Located in Bur Dubai, a two bedroom in Al Mankhool had an average rent of AED 90,000 in 2018, but this year it is expected to reach AED 148,000. That’s a 64.44% increase.

Other residential districts include Ras Al Khor (Samari Project), and Ayal Nasir, which will have the most rental increase, by 35.94% and 22.96% respectively.

Five bedroom units at Umm Al Sheif and one bedroom units at Dubai Culture Village and Dubai Residence Complex are also included in the list of areas with the highest rental increase.

The Goshi Residence at Dubai Residence Complex for one bedroom costed AED 52,000 in 2018. As per the 2019 rental index, it may increase by + 11.54% this year.

3.  Areas with the lowest rental increase

Area Name Bedroom Average Rent in 2018 (AED) Average Rent 2019 (AED) Percentage Change
Al Manara - Complexes Five bedrooms 235,000 235,500 0.21%
Al Mankhool Six bedrooms 245,000 245,500 0.2%
The Lakes Four bedrooms 275,000 275,500 0.18%


Al Manara (complexes), Al Mankhool for five bedrooms and six bedrooms, respectively, is likely the areas to have lowest rental increase, somewhat an advantage for current residents.  Four-bedroom apartments at The Lakes will see an increase , 0.18%.

4.  Areas with the lowest rental decrease


Area Name Bedroom Average Rent in 2018 (AED) Average Rent 2019 (AED) Percentage Change
Al Jafiliya Four bedrooms 170,000 169,000 -0.59%
Al Barari Six bedrooms 520,000 517,000 -0.58%
The Views Three bedrooms 192,000 191,000 -0.52%
Al Muraqqabat Three bedrooms 106,000 105,500 -0.47%
Al Wasl Two bedrooms 115,000 114,500 -0.43%
Al Souq Al Kabeer Four bedrooms 126,000 125,500 -0.4%


Six areas, each with different floor plans, in the UAE’s most populous city, will see the lowest rental decrease. The first three residential areas in Dubai – Al Jafiliya, Al Barari, and The Views, are most likely to see the lowest rental decrease from 2018 to 2019. Al Muraqqabat, Al Wasl, and Al Souq Al Kabeer follows suit.

Even though the official rental range in Panorama at the Views Tower 1 for three bedrooms is AED 200,000, you can might be able to rent for AED 191,000 as per the current listing prices.


5.  Areas with the highest rental decrease  


Area Name Bedroom Average Rent in 2018 (AED) Average Rent 2019 (AED) Percentage Change
Dubai Festival City - Badia Phase 1 & 2 Four bedrooms 281,000 205,500 - 26.87%
Dubai Culture Village Three bedrooms 193,000 131,000 -32.12%
Dubai Culture Village Two bedrooms 161,000 107,000 -33.54%
Dubai Festival City - Badia Phase 1 & 2 Three bedrooms 256,000 163,000 -36.33%
Nad Al Shiba Three bedrooms 177,000 134,000 -24.29%
Dubai Festival City - Badia Phase 1 & 2 Four bedrooms 281,000 205,500 -26.87


Residents living in Dubai Festival City – Badia Phase 1 & 2, Umm Suqeim, Dubai Culture Village, and Nad Al Sheba, are in luck because these areas – depending on the floor plans – are going to have the highest rental decrease this year compared to last year. For example, Dubai Festival City - Badia Phase one, two and three bedrooms will decrease by 26.87%.

There’s an inundate of apartments for lease and rent to choose from in the ever-changing real estate sector in Dubai this year. Whether a seller, buyer or tenant, our Rental Index provides an understanding of the price fluctuations in the city’s areas - depending on floor plans - to help ease your array of choices.


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