As the impact of rising rental levels and the cost of living begins to have an impact, Bur Dubai has risen in popularity among Dubai tenants, while premium areas in Downtown have begun to lose some of their appeal, according to newly released research.
New data from real estate website Bayut.com found that the Dubai Marina was the most searched locality in Dubai for residential properties for rent, accounting for 10.75 percent of all searches last year.
Coming second on the list was Jumeirah Lake Towers, with 4.8 percent of searches, compared to 5 percent in 2013.
However, closer analysis of the data showed that Bur Dubai gained more popularity among residents of Dubai in 2014 with 4.42 percent of the total search results, compared to 3 percent the year before.
“With ideal rents for families, couples and singletons on a budget, Bur Dubai is also ideally located to be easily accessible from anywhere in Dubai,” the website said.
At the same time, rising rental rates in the upmarket Downtown Dubai area has seen the area surrounding the Burj Khalifa decrease in the popularity stakes. Downtown accounted for a total of 4.2 percent of searches, down from 5.2 percent in 2013.
“The world’s most exclusive address to call home has slightly lost property seekers’ interest,” the website added.
Completing the top five most popular areas with tenants was Business Bay, which accounted for a steady 3.03 percent of searches last year.
Earlier this month, classified ads website Dubizzle’s latest real estate report showed that rents of one, two and three bedroom properties in Business Bay and Downtown Dubai witnessed an average increase of 13 percent.
The figures revealed that Uptown Motor City was the only community in Dubai to experience a drop in rent and sale prices from Q4 2013 for its one- and three-bed apartments.
Dubizzle said it saw more than 28 million visits to its property section in 2014, with one, two and three bedroom apartments in Dubai Marina the most searched with over 10.4 million hits.
The report said that one bedroom apartments in Deira and Bur Dubai witnessed an increase of 36 percent and 19 percent respectively while rents of three bedroom apartments in Bur Dubai increased by 24 percent.
Downtown Dubai and Business Bay saw annual rent increases of between 10-16 percent while tenants seeking rental properties with a waterfront view on the iconic Palm Jumeirah can expect an average annual cost of AED150,000 for a one bedroom apartment, AED185,000 for a two bedroom apartment and AED250,000 for a three bedroom apartment, the report added.
This represents an increase of 11 percent, 9 percent and 14 percent respectively from Q4 2013.
Despite suffering from long-term construction and traffic congestion, Dubizzle data showed that one, two and three bedroom waterfront apartments in Dubai Marina observed an increase of 11 percent, 15 percent and 18 percent respectively.
Commenting on the report, Ann Boothello, product marketing manager for property at Dubizzle said: “We can anticipate a slight dip or leveling off on property prices in the months to come.” Source: Arabianbusiness