Certain areas in Dubai are establishing themselves as budget-friendly rental options, with Discovery Gardens and Sports City showing remarkable stability in their asking rates. For residents willing to consider non-freehold locations, Deira apartments also display signs of price levelling.
Star Rating System Influences Rental Increases
Dubai’s introduction of a star rating system is having a significant impact on landlord behaviour. Every building now receives a specific star rating – ranging from 1 to 5 – as determined by the newly implemented digital Rental Index.
Estate agents report that less well-managed buildings faced a reality check when the star rating system took effect. This explains why tenants in Dubai’s more affordable areas may not experience substantial rent increases this year.
Property owners must now follow specific processes to upgrade their properties for better ratings. This development offers tenants a reduced likelihood of experiencing sudden sharp increases in their rental payments.
Affordable Areas: Current Rental Trends
Discovery Gardens
A one-bedroom apartment currently commands an annual rent of approximately Dh60,000, according to Asteco.
This represents an increase from:
- Dh52,500 in 2023
- Dh42,500 in 2022
Tenant feedback suggests rent increases in Discovery Gardens are hovering around 5%.
Dubai Sports City
One-bedroom units saw a modest increase to Dh55,000 in 2024, showing only a slight rise from the Dh52,500 average in 2022.
According to Asteco, while new supply in 2024 was lower than anticipated, projections for 2025 indicate a significant increase in inventory. If this projected supply enters the market as expected, some areas may see moderation or even reversal of rental growth.
Estate agents note that both new construction and the new Rental Index with its star rating system are helping slow rental growth in certain Dubai locations.
Deira Rental Landscape
In Deira, tenants can expect to pay:
- Dh50,000 annually for a one-bedroom apartment
- Dh75,000 for a two-bedroom unit
Compared to 2023, these rates show modest increases of approximately Dh2,000-Dh2,500. For newer apartment buildings in Deira, average rentals tend to be higher.
Leasing professionals note that most tenants in Deira proper are renewing their leases, resulting in fewer new rental listings. Areas such as Al Nahda and Al Ghusais offer more rental options but at higher rates and with the possibility of future increases.
JVC: The Exception to Stability
While some areas are seeing stabilisation, Jumeirah Village Circle (JVC) stands as an exception. During 2021-22, this cluster attracted many seeking mid-tier rentals.
JVC rent increases have been particularly sharp:
- Dh40,000 for a one-bedroom in 2021
- Dh65,000 by the end of 2024
These properties tend to be newer with better maintenance, resulting in higher star ratings and consequently higher asking rates from landlords.
| Area | Unit Type | Monthly Rent 2023 | Yearly Rent 2023 | Monthly Rent 2025 | Yearly Rent 2025 | % Increase |
|---|---|---|---|---|---|---|
| Discovery Gardens | 1 Bedroom | AED 4,375 | AED 52,500 | AED 5,000 | AED 60,000 | +14.3% |
| Sports City | 1 Bedroom | AED 4,375 | AED 52,500 | AED 4,583 | AED 55,000 | +4.8% |
| Deira | 1 Bedroom | AED 3,958 | AED 47,500 | AED 4,167 | AED 50,000 | +5.3% |
| Deira | 2 Bedroom | AED 6,042 | AED 72,500 | AED 6,250 | AED 75,000 | +3.4% |
| JVC | 1 Bedroom | AED 3,333 | AED 40,000 | AED 5,417 | AED 65,000 | +62.5% |
| Al Nahda | 1 Bedroom | AED 3,750 | AED 45,000 | AED 4,583 | AED 55,000 | +22.2% |
* Areas with green background show the most stable rental prices
* Areas with light yellow background show the highest rental increases
* Data based on Asteco property services report and market analysis
Looking Forward
As we move further into 2025, Dubai’s rental market continues to adjust to these new regulatory frameworks. The combination of increased housing supply and the star rating system may create more balanced rental conditions in select neighbourhoods, particularly in the affordable segment.
For prospective tenants, areas like Discovery Gardens, Sports City, and Deira present alternatives worth considering for those seeking relative rent stability in Dubai’s dynamic property market.
JobXDubai 
Leave a comment