Dubai is a popular tourist destination. Plus, many business individuals travel to Dubai for a short-term stay. The convenience of switching homes due to the nature of jobs or business also contributes to the popularity of short-term rentals in Dubai.
Dubai Q1 short-term rental property market report 2023 offers a detailed insight into the popular communities for affordable and luxury short-term rentals in the Emirate. As per the data collected from the short-term rental listings on dubizzle, the average daily and monthly rents in popular neighbourhoods have shown a decline in Q1 2023. Here are some key takeaways from the data collected for short-term rentals in Dubai.
- International City and JVC have been the top searches by users looking for affordable monthly short-term rental apartments in Dubai.
- Overall average asking rent of affordable monthly rentals has declined by approximately 2.92%.
- Dubai Marina and Business Bay have continued to be users’ favourites for luxury monthly short-term rental apartments.
- Luxury apartments have witnessed a 6.43% drop in average monthly rents from Q4 2022.
- The daily rental market has witnessed a mixed market, with some areas showing a significant drop while others showing an incline in the average asking rents.
- Affordable and luxury neighbourhoods for monthly short-term rental villas have also shown a drop in average rents, according to the data collected from dubizzle.
Let’s take a look at detailed insights into the short-term rental market in Dubai and how it has fared in Q1 2023 as we move into Q2 2023.
TOP AFFORDABLE AND LUXURY AREAS FOR MONTHLY RENTALS IN DUBAI
According to the data collected about the short-term rental property market trends in Q1 2023, a few new communities have emerged as popular areas for short-term rental apartments in Dubai. However, the monthly short-term rental apartments have seen an overall decline in the asking rents compared to Q4 2022.
Affordable and luxury areas have experienced a combined drop of 5.48% in the monthly asking rents for apartments. Many factors contribute to the declining rental prices. For instance, peak tourist season at the end of the year witnesses high demand, contributing to higher prices. However, rental costs drop in Q1 2023 shows the ending of peak tourist season.
Here is a detailed analysis of the popular neighbourhoods for monthly short-term rental apartments in Dubai as per the listings on dubizzle.
TOP AFFORDABLE AREAS FOR MONTHLY RENTAL APARTMENTS IN DUBAI
The real estate short-term rental market for Q1 2023 shows a mixed trend of asking rents. That said, some areas have witnessed a hike while others showed a decline in monthly rental prices asked by the short-term rental operators on dubizzle. Jumeirah Village Circle (JVC) and Deira have seen an increase in the average asking rents. Meanwhile, average rents in the International City, Discover Gardens and Bur Dubai have dropped.
According to the Q1 2023 Dubai short-term rental market report, International City has the most number of searches. Moreover, the average asking rents have dropped 1.20%, from AED 2,825 monthly in Q4 2022 to AED 2,791 in Q1 2023.
- The average asking rental prices for Studio and 1-bedroom apartments for monthly short-term rent in International City have increased by 0.16% and 1.30%. However, the average rent for 2-bedroom monthly short-term rentals in International City has dropped by 6.30%.
- Monthly rent for studio apartments in International City has increased to AED 2,533 in Q1 2023. The average rent of 1-bedroom apartments in the International City has upscaled to AED 3,586, whereas rent for the two-bedroom short-term rentals has dropped to AED 6,350.
Jumeirah Village Circle (JVC) has ranked second among the most searched budget-friendly areas for monthly short-term rental apartments in Dubai. The average monthly rent of short-term rental apartments in JVC has increased by 4.19%. That said, the average rental price has risen to AED 6,988 in Q1 2023, compared to AED 6,707 in Q4 2022.
- The average monthly asking rental prices for studio and one-bedroom apartments in JVC have climbed by 2.53% and 4.46%, respectively, from Q4 2022. Meanwhile, the average monthly rent for 2-bedroom short-term rentals in JVC has decreased by 3.70%.
- In Q1 2023, the monthly rent for studio apartments in JVC averaged AED 5,512. Additionally, the average rent for one-bedroom short-term rentals in JVC has increased to AED 7,710, while the average price for two-bedroom short-term rentals has decreased to AED 10,452.
Short-term rental seekers have also searched Bur Dubai for budget-friendly monthly short-term rental apartments in Dubai. The average monthly asking rent for different apartment configurations has witnessed an overall 16.03% drop in Bur Dubai. That said, compared to AED 8,748 asking rent in Q4 2022, the average rent of monthly short-term rental apartments in Bur Dubai has depreciated to AED 7,346 in Q1 2023.
- According to the Dubai short-term rental property market trends in Q1 2023, the average monthly rent of studio apartments and 1-bedroom short-term rental apartments listed on dubizzle in Bur Dubai has dropped 48.98% and 4.79%, respectively. Meanwhile, the average monthly rent for 2-bedroom apartments has inclined by 12.66%.
- In Q1 2023, the average rent for studio and 1-bed apartments decreased to AED 4,234 and AED 7,477 per month, respectively. However, the average monthly rent for 2-bed apartments has increased to AED 13,695.
Following Bur Dubai, Deira has ranked fourth among the leading affordable communities for monthly short-term rentals. The average asking rent of monthly short-term rental apartments has increased by 8.89%, from AED 6,815 in Q4 2022 to AED 7,421 in Q1 2023.
Discovery Gardens has also emerged as a popular neighbourhood for monthly short-term rental apartments, according to user searches on dubizzle. The landlords have reduced the monthly rents of apartments in Discovery Gardens. Compared to Q4 2022, the overall average asking rental price has dropped by 4.98%, from AED 6,548 to AED 6,222 per month.
LUXURY AREAS FOR MONTHLY RENTAL APARTMENTS IN DUBAI
According to the Q1 2023 Dubai short-term rental market trends, luxury apartments for monthly rent have experienced a combined 6.43% drop. That said, apartments listed for monthly short-term rent on dubizzle had an average asking rental price of AED 18,471 in Q4 2022, which has dropped to AED 17,356 in Q1 2023.
As per the data collected from the dubizzle, Dubai Marina has topped the list of luxury areas for short-term rental apartments in Dubai. The apartments for monthly short-term rent in Dubai show a 7.48% drop from Q4 2022 in the average rental price. In Q1 2023, the asking rent of short-term rental apartments in Dubai Marina has averaged AED 14,685, compared to AED 15,873 in Q4 2022.
- The average monthly rents of apartments in Dubai Marina have dropped across the board. Studio, 1-bedroom and 2-bedroom apartments in Dubai Marina have declined by 4.60%, 5.80% and 8.28% in the average asking monthly rents.
- The average monthly rents of the studio, one and two-bedroom apartments have decreased to AED 8,839, AED 12,474 and AED 18,919 in Q1 2023.
Business Bay has ranked second among the popular user preferences for short-term rental apartments in Dubai. The average asking rent has a 5.11% drop, from AED 12,938 in Q4 2022 to AED 12,277 in Q1 2023.
- The renters have reduced the average monthly rents by 1.23%, 7.29% and 5.00% for the studio, 1-bed and 2-bed short-term rental flats, respectively.
- The decline has brought the average asking rents down to AED 9,050 and AED 11,435 for the studio and 1-bedroom short-term rental apartments. Meanwhile, a 2-bedroom short-term rental apartment in Business Bay has an average monthly rent of AED 16,870, which dropped from AED 17,757 in Q4 2022.
Since the average rents have dropped in monthly rentals, Downtown Dubai has experienced the same with a 5% decline. Ranked third among the most preferred luxury neighbourhoods by tenants looking for a short-term rental apartment, the area houses several skylines and amenities. After the average monthly rental prices drop, the monthly rents of short-term rental apartments in Downtown Dubai have averaged AED 21,317 in Q1 2023, from AED 22,440 in Q4 2022.
- The average asking rent for monthly rental apartments in Downtown Dubai has decreased across the board for different apartment configurations.
- The average rent of studio apartments has dropped 7.87% to AED 9,978 monthly, whereas rent of one and two-bedroom apartments has averaged AED 14,249 and AED 22,110, after a 2.65% and 11.97% drop, respectively.
The fourth and fifth-ranked luxury neighbourhoods for monthly rental apartments, Palm Jumeirah and DIFC, have experienced a 6.90% and 5.27% in average monthly rents, respectively. In Q1 2023, the asking rent for monthly rental flats has averaged AED 25,167 and AED 13,333, from AED 27,031 and AED 14,075 in Q4 2022, respectively.
TOP AFFORDABLE AND LUXURY APARTMENTS FOR DAILY RENTALS
According to the short-term rental market trends in Q1 2023, the rental price of apartments listed for daily rent in luxury and affordable areas has declined. Luxury and budget-friendly daily rentals have witnessed an overall 0.4% drop in average asking rents from Q4 2022, which is ever so slight.
Bur Dubai and Al Barsha have topped the user preferences for budget-friendly daily rentals, whereas Dubai Marina and Downtown Dubai have continued to be the popular luxury areas for daily rentals. Moreover, average asking rents of studio and 1-bed apartments daily rentals in Dubai have shown a downward trend in most areas. In the meantime, the average rental price of 2-bed flats for daily rent has increased in some areas.
Let’s go through the luxury and affordable areas for daily rentals in this Dubai Q1 short-term rental property market report 2023.
AFFORDABLE AREAS FOR DAILY RENTAL APARTMENTS IN DUBAI
Top-searched affordable areas for cost-friendly daily rentals have shown a 1.01% drop. That said, property listers on dubizzle have reduced the average asking rent from AED 393 in Q4 2022 to AED 389 in Q1 2023. The average daily rental prices in Bur Dubai and Al Barsha have increased, whereas the other two affordable areas have shown a downward trend.
As per the Q1 2023 short-term rental market trends in Dubai, Bur Dubai has ranked first according to user searches. The average rent of apartment rentals in Bur Dubai has inclined from AED 289 to AED 315 per day, with a 9% increase.
- Studio apartments for daily rent in Bur Dubai have witnessed a significant drop of 27.86% in the average daily rental values. Meanwhile, the average daily asking rent of 1 and 2-bedroom apartments has increased by 6.06% and 8.33% from Q4 2022.
- In Q1 2023, the average daily rent of studio apartments has been recorded as AED 201 after a drop, whereas the daily rent of 1 and 2-bed flats have averaged AED 231 and AED 600, respectively.
Al Barsha is the second-most preferred area for budget-friendly daily rental apartments. Showing a 0.49% increase in average asking rents, the rental prices of apartments in Al Barsha have averaged AED 411 per day in Q1 2023 from AED 409 daily in Q4 2022.
- The average daily rents for Studio and 1-bedroom apartments have decreased by 16.51% and 1.79%, respectively. However, two-bedroom apartments in Al Barsha have increased by 1.29% in average daily asking rents.
- After average daily rents in Al Barsha have decreased, the rent of studio and 1-bedroom apartments have become AED 212 and AED 335. Meanwhile, the daily rent of 2-bedroom apartments has averaged AED 541 in Q1 2023.
Jumeirah Village Circle (JVC) has ranked third among the most popular affordable areas for daily short-term rental apartments in Dubai. The average daily rents have decreased by 2.05%. In Q1 2023, the average daily rents for apartments in JVC have decreased to AED 383 from AED 391 in Q4 2022.
- Daily studio and 1-bedroom apartment rentals in JVC have shown a 0.29% and 1.83% drop in average asking rents. In the meantime, the average rent for 2-bedroom daily rental apartments in JVC has increased by 6.24%.
- After a drop in average rents, the rental prices of studio and 1-bedroom apartments have averaged AED 346 and AED 383 per day, whereas the daily asking rent for 2-bedroom apartments has averaged AED 625.
Jumeirah Lake Towers (JLT) is another top-searched affordable neighbourhood for daily rental apartments. The average daily rental price has shown a downward trend of 8.76%, with the overall average rent of apartments decreasing from AED 484 in Q4 2022 to AED 445 in Q1 2023 per day.
LUXURY AREAS FOR DAILY RENTAL APARTMENTS IN DUBAI
The most popular luxury areas for daily rental apartments have shown a constant average daily rent. That said, the average daily rent of Dubai Marina and Downtown Dubai has increased, whereas Business Bay, Palm Jumeirah and JBR have shown a downward trend. Let’s go through the top searched areas for luxury daily rental apartments in Dubai.
Dubai Marina has shown an overall 2.61% upward trend, with average daily rent for apartments increasing from AED 727 in Q4 2022 to AED 746 in Q1 2023.
- Studio and 2-bedroom apartments for daily rent in Dubai Marina have witnessed a downward trend of 7.80% and 0.97% in average rental prices, respectively. In Q1 2023, average daily rents of 1-bedroom apartments have increased by 0.65% from Q4 2022.
- After a decrease, the daily rent for studio and two-bedroom apartments has averaged AED 410 and AED 918, respectively, whereas the increase for 1-bed flats has taken the average daily asking rent to AED 618.
Downtown Dubai, home to skylines, state-of-the-art amenities and facilities, has ranked second among the luxury neighbourhoods for daily short-term rental apartments. An overall 15.46% upscale in the average rents for apartments in Downtown Dubai has taken rental price to AED 1,860 per day in Q1 2023.
- The average daily asking rents for the studio, 1-bed and 2-bed apartments have upscaled across the board by 22.50%, 8.50% and 14.98%, respectively.
- After an increase, the daily rents for the studio, 1-bed and 2-bed apartments have averaged AED 773, AED 1034 and AED 1973, respectively.
Business Bay ranks third on the list of popular luxury neighbourhoods according to user searches on dubizzle. With average daily rents decreasing by 5.18%, the daily rents have averaged AED 567 in Q1 2023.
- The studio apartments have shown a slight increase of 0.43% in the average daily rent of the apartments in Business Bay listed on dubizzle. Meanwhile, the average daily rents for one and two-bedroom apartments have declined by 6.43% and 4.88%, respectively.
- After an increase, the rent of studio apartments has averaged AED 465 per day. Meanwhile, the average daily rent for 1-bed and 2-bed flats has reduced to AED 509 and AED 758 in Q1 2023, respectively.
Palm Jumeirah and JBR have ranked fourth and fifth among the top-searched luxury areas for daily apartment rentals. Both areas have witnessed a 12.66% and 8.65% drop in average daily rents, respectively. After a decrease in Q1 2023, the overall daily rent for Palm Jumeirah and JBR has averaged AED 1,090 and AED 855, respectively.
TOP AREAS FOR MONTHLY RENTAL VILLAS IN DUBAI
Users looking for monthly rental villas in Dubai have searched for DAMAC Hills 2 (Akoya by DAMAC) and Palm Jumeirah. Both neighbourhoods have shown a downward trend in average rental prices.
The monthly rent of villas in the affordable neighbourhood, DAMAC Hills 2, has averaged AED 13,777 in Q1 2023 after a decline of 9.44%. Meanwhile, rent for luxury villas in Palm Jumeirah has averaged AED 132,237 per day in Q1 2023, with a 2.36% drop.
That concludes the detailed Dubai Q1 short-term rental property market report 2023. It shows average asking rent changes from Q4 2022 and the top affordable and luxury areas to rent apartments and villas on a short-term basis.
If you are looking for long-term rental apartments, our Q1 2023 Dubai rental market report will give a better insight into top affordable and luxury areas for renting villas and apartments. You can also take a look at popular short-term rentals in Dubai.
Stay tuned to the dubizzle real estate blog to get detailed information and analysis of the property market in the UAE.
Disclaimer: The trends mentioned in the Dubai short-term rental market report for Q1 2023 depend upon the properties listed on dubizzle for monthly or daily short-term rent. It isn’t an actual representation of real estate trends and transactions in the Emirate.
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