Relocating to a new country comes with many adjustments, and successfully navigating the rental landscape tops the to-do list for many new expats in the UAE.
With a dynamis real estate sector prone to rapid price fluctuations and an influx of supply that regularly refreshes available options, renting in the UAE presents unique opportunities but also demands savvy decision making.
By staying abreast of market trends and understanding the step-by-step process to renting an apartment in Dubai, new residents can make well-informed decisions to find the perfect home base as the real estate sector continues to evolve.
Know your budget
First things first, know your budget, said Fibha Ahmed, Sales Director at Bayut & dubizzle.
A simple but important task when considering a property to rent in Dubai where prices have skyrocketed across almost all real estate market segments during the first half of 2023, with now signs of slowing down.
“Crunch those numbers to ensure you’re going into your property search harbouring the knowledge of exactly what you can and can’t afford,” she said.
When embarking on an apartment or villa search, experts stress taking stock of one’s complete rental budget from the outset. This means accounting not only for the advertised rent but also average utility bills and any building maintenance or service charges.
District cooling expenses in particular can surge seasonally, so determining realistic total outlay is very important.
“Tenants should take into consideration the overall expenses, which encompass the average monthly DEWA (Dubai Electricity and Water Authority) bills, as well as any potential costs associated with air conditioning if it is provided by a district cooling provider,” Ayman Youssef, the Managing Director from Coldwell Banker, told Arabian Business.
Dubai rental contracts, payment plans – All you need to know
Renting a property in Dubai presents unique considerations that set it apart from other cities around the world. One notable difference is the annual renewal of rental contracts, coupled with the requirement to pay rent through cheques.
When it comes to payment, tenants have the flexibility to either submit the full amount upfront in one cheque or opt for installment plans, typically in the form of quarterly or biannual payments (two or four cheques). Properties that allow monthly payments in 12 cheques are limited, so many new tenants tend to opt for short-term rentals or hotel apartments which usually include bills.
Additionally, prospective tenants should carefully weigh whether they prefer a property with inclusive bills or not. Though they are relatively rare, some properties do offer the convenience of inclusive bills, albeit at a higher rental cost. This arrangement can be more hassle-free as it eliminates the need for tenants to remember and pay individual utility bills on time, sparing them from potential surprises or the hassle of managing multiple payments.
Top affordable and luxury Dubai residential districts
Tenants should not allocate more than 30 percent of their monthly income towards rent, Youssef said.
For instance, an attractive option for expats who are earning between AED19,000 and AED25,000 per month would be a two-bedroom apartment in Dubai Silicon Oasis, which can fit neatly within that budget.
“This option has become increasingly viable due to the expansion of Al Ain Road, the new interchanges connecting to the community, and the recent opening of the Silicon Central Mall. This makes Dubai Silicon Oasis one of our top choices for prospective renters,” he said.
Areas in the affordable market segment that were the most popular during the first half of this year, according to Bayut and dubizzle, are Jumeirah Village Circle (JVC), Al Nahda and Deira. During the same period, DAMAC Hills 2 emerged as the most sought-after district for villas in this market segment (for less than AED 150,000 in rent per year). Mirdif also held sway.
Meanwhile in premium leasing, Dubai Marina, Business Bay and Downtown dominated the apartment sector, with Dubai Hills Estate, Al Barsha, Arabian Ranches 3 and Jumeirah rating highly for luxury villas.
“Although the Dubai real estate market is relatively young, it is wise for tenants to opt for well-maintained buildings or villas. A well-maintained unit tends to be hassle-free, with fewer unexpected maintenance issues. To ensure this, prospective tenants can assess the building’s age and inquire about its management practices,” said Youssef.
“Tenants are encouraged to steer clear of sublease companies when renting and instead consider renting directly from the property owner.”
Rental valuations still vary significantly between new developments and older buildings however, providing opportunities for savings. Direct contact with property owners also circumvents additional fees sometimes associated with sublet arrangements. Overall condition and age of chosen accommodations further impact long-term costs via unexpected maintenance requirements.
Neighbourhood research made easy
Prospective tenants should research their potential new neighbourhood before making a final decision.
Taking the time to learn more about the area can provide valuable insights into the quality of life one can expect. One effective way to gain a comprehensive understanding is by visiting the properties in any given area at various times of the day. This allows for an assessment of factors such as traffic patterns, noise levels, and overall neighbourhood ambiance, said Youssef.
New tenants should also factor in proximity to workplaces, schools, and amenities. Considering these preferences from the outset ensures that the chosen rental aligns with the practical aspects of daily life. Commuting distance, accessibility to schools, and the availability of essential services and facilities should all be taken into account during the initial assessment of rental affordability.
Beyond these considerations, conducting additional research about the neighbourhood can provide valuable insights. Exploring online resources, such as forums, community websites, and social media groups, can offer firsthand experiences and perspectives from current and former residents.
There are several tools that can be of use to new tenants who are looking to make the process easier and save themselves the hassle of doing too many viewings. Tools like Search 2.0 on Bayut allow you to input points of interest such as neighbourhood preferences, be it prioritising being near your place of work or kids’ schools. The Bayut tool uses AI technology to calculate your ideal property-renting areas based on drive times and other factors. It then proceeds to filter and show you the current listings for those areas.
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