Renting a property in Dubai can be an exciting opportunity, but the process of setting the right rental price can actually be tricky. Whether you’re a first-time landlord or an experienced one, knowing the right balance between the local market, associated costs, and property type is important for a successful rental.
In this guide, we will help you go through the factors that determine how much rent you should charge in Dubai, keeping both your interests and the tenants’ in mind.
Know Your Property Type
Rental prices vary by property type. Here’s a quick look at what you can expect in Dubai:
- Room in a Shared House: AED 2,000 – AED 5,000 per month
- One-Bedroom Apartment: AED 4,000 – AED 8,000 per month
- Villa: Starting from AED 10,000 per month, with luxury villas much higher.
Consider your property’s type and location in Dubai. Areas like Jumeirah Beach Residence (JBR) or Dubai Marina have higher rents. Jumeirah Village Circle (JVC) or Al Barsha might be more affordable.
Consider the Length of the Lease
Long-term leases (12 months or more) usually have better prices than short-term ones (3 to 6 months). For short-term leases, you might charge 20%-50% more than for a 12-month lease. This helps attract long-term tenants while earning good returns.
Upfront Costs and Fees for Tenants
There are various fees for tenants in Dubai, affecting their rent payments. These fees are important to remember:
- Security Deposit: Usually 5% of the annual rent for unfurnished, 10% for furnished properties.
- Agency Fees: Typically 5% of the annual rent, a common real estate commission in Dubai.
- DEWA (Dubai Electricity and Water Authority) Fees: Expect a deposit of AED 2,000 for apartments and AED 4,000 for villas.
- Ejari Registration Fees: Around AED 120 to AED 100, depending on the tenancy agreement registration method.
- Municipality Fees: 5% of the annual rent, added to the monthly DEWA bill.
Include these upfront costs in your rent to ensure tenants can afford it without straining their finances.
The Impact of Chiller Fees and Other Utilities
Dubai’s hot climate makes air conditioning a big expense. Some buildings include chiller fees in the rent, while others charge separately. Be clear about whether you’re including these costs in the rent or passing them on to the tenant.
Setting Competitive Rental Prices
When setting rent, analyze the market and make sure your prices are competitive. If your property is in a desirable location or has premium features, you can charge more.
Key Factors That Affect Rental Prices in Dubai
- Location: Prime areas like Dubai Marina, Downtown, or Palm Jumeirah have higher rents. Off-plan properties or developments in emerging areas may have lower prices but offer growth opportunities.
- Property Size and Type: Larger properties, like villas and multi-bedroom apartments, attract higher rents. But smaller apartments in high-demand areas can also offer good returns.
- Amenities and Furnishing: Fully furnished properties with luxury amenities can command higher rents than unfurnished ones.
Detailed Monthly Rent Prices for Dubai Areas
| Area | Property Type | Average Rent (Monthly) | Location/Description |
| Al Qusais | Studio | AED 2,142 | Affordable and well-connected to main roads and metro. |
| International City | Studio | AED 2,200 | Budget-friendly area with diverse communities and easy access to highways. |
| Deira | Studio | AED 2,833 | Central area, close to Dubai Creek and business hubs. |
| Dubai South | Studio | AED 2,974 | Emerging community near Al Maktoum International Airport with more development underway. |
| Dubailand | Studio | AED 2,984 | Growing residential area with ample green spaces. |
For 1-Bedroom Apartments
| Area | Property Type | Average Rent (Monthly) | Location/Description |
| Al Nahda | 1-Bedroom Apartment | AED 3,167 | Popular for affordable rents and accessibility to shopping centers and schools. |
| Jumeirah Village Circle | 1-Bedroom Apartment | AED 4,333 | Quiet and family-friendly area with an increasing number of amenities. |
| Discovery Gardens | 1-Bedroom Apartment | AED 4,500 | Ideal for singles and families; close to Ibn Battuta Mall and the metro. |
| Sports City | 1-Bedroom Apartment | AED 4,667 | Thriving community with proximity to sports facilities, providing high-end living. |
| Al Furjan | 1-Bedroom Apartment | AED 5,000 | A growing residential community with modern villas and apartments. |
| Mirdif | 1-Bedroom Apartment | AED 5,417 | Quiet, suburban area popular with families, close to schools and malls. |
For 2-Bedroom Apartments
| Area | Property Type | Average Rent (Monthly) | Location/Description |
| Jumeirah Beach Residence | 2-Bedroom Apartment | AED 9,167 | Iconic beachside location with stunning views, luxury living. |
| Dubai Marina | 2-Bedroom Apartment | AED 7,917 | Vibrant, waterfront area with an active nightlife and plenty of dining options. |
| Downtown Dubai | 2-Bedroom Apartment | AED 10,000 | Prime location with unparalleled views of Burj Khalifa and luxury lifestyle. |
| Dubai Creek Harbour | 2-Bedroom Apartment | AED 9,167 | A futuristic neighborhood with a great mix of residential and commercial properties. |
| Bluewaters Island | 2-Bedroom Apartment | AED 10,833 | A luxury island living with views of the Dubai Eye and the sea. |
For 3-Bedroom Apartments/Villas
| Area | Property Type | Average Rent (Monthly) | Location/Description |
| Arabian Ranches | 3-Bedroom Villa | AED 12,500 | Quiet, gated villa community with top-notch amenities and family-oriented atmosphere. |
| Palm Jumeirah | 2-Bedroom Apartment | AED 11,667 | Luxurious, exclusive island living, with private beach access. |
| Meydan | 3-Bedroom Villa | AED 14,583 | Exclusive villas and luxury residences with vast open spaces. |
| Jumeirah Beach Residence | 3-Bedroom Apartment | AED 15,000 | Prestigious area with beach access, ideal for high-net-worth individuals. |
| Downtown Dubai | 3-Bedroom Apartment | AED 15,833 | Premium location in the heart of the city with easy access to global attractions. |
| Emirates Hills | 4-Bedroom Villa | AED 25,000 | A high-end gated community with panoramic views and world-class amenities. |
Final Thoughts
Setting the right rental price in Dubai involves considering several factors. These include the type of property, its location, and any extra fees for tenants. Knowing the market well and adjusting your price can help attract good tenants and increase your rental income.
Dubai’s rental market can be tough, but with the right research and understanding of costs, you can find a balance. This balance will help you make a profit while also attracting tenants.
