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Apartments in Dubai

Note, although this page was last updated on 12-May-2010, most information about prices, developments etc has not been properly updated since 2007 and needs more serious revision. Although as of 2009, most rental prices are close to where they were in 2006 after having doubled and halved again in 2007-2008. Mind the gap.

Middle to high end apartments in Dubai typically have a swimming pool and gym facilities. Occasionally a squash court. Rooms are usually quite spacious and most have ensuite bathrooms. Covered car parking may be insufficient for the number of apartments in a building and, in the more densely populated areas, street parking is difficult to find. Bur Dubai area has parking meters (which don't seem to make it easier to find a parking space, just more expensive).

Going down the price scale, amenities become fewer and/or less well-maintained, and bedrooms become smaller.

Most apartment buildings in Dubai will have at least a resident watchman, and the larger, more expensive buildings will have several security personnel with a 24 hour reception area.

Buying Apartments in Dubai
  • See below for areas where foreigners can buy apartments in Dubai.
Numbers of apartments under construction in Dubai
  • 250,000 units under construction are expected to be completed from mid 2006 to end 2007 (apartments and villas). As of January 2007, this figure is laughable - maybe 30,000-60,000 units will be completed during 2007. Almot everything residential development is delayed 6 months to 2 years. That figure is more likely to be for a total from 2007-2010.
  • 40,000-45,000 apartments in Dubai Marina.
  • 26,000 in Discovery Gardens.
  • 21,000 in International City.
  • 18,000 in Dubai Sports City .
  • 15,000-18,000 apartments in Jumeirah Lake Towers (JLT).
  • 7,000 in Jumeirah Beach Residence (JBR).
Renting Apartments in Dubai - long term

During 2006 and 2007 it was very difficult to find anything to rent, especially one bedroom apartments. Don't waste your time waiting for real estate agents to call you back if you're searching. They'll be deluged with enquiries. If you find something, don't hang about too much wondering if you'll find something better. Chances are you won't, and the one you found will have gone to someone else by the end of the day. This situation may start to ease by the end of 2008 and early 2009 as more apartments are completed.

Apartments can be rented in all styles, sizes, and prices. From cheapish studios to expensive penthouse suites. All rental estimates are given in dirhams per year. In Dubai it is normal to pay the full year's rent in advance. Sometimes you may be able to pay with 2, 3, or even 4 checks meaning you write post dated checks for the relevant amounts.

If you are looking for a studio or 1 bdrm apartment, a common alternative for singles or couples is to rent a room in a shared villa or apartment. Unmarried couples living together are breaking the law but, depending on nationality or culture, the likelihood of having a problem varies from minimal to high. Maids trying to live with boyfriends usually seem to get arrested sooner or later. Western couples will rarely get into trouble. If one partner is Muslim - especially if female - there's more chance of problems. Emirates other than Dubai are more strict in this regard, especially Sharjah. Don't annoy your neighbours.

The better apartments usually have whitegoods included (stove/cooker, probably a fridge/refrigerator, possibly a washing machine, maybe a dishwasher) even if advertised as 'unfurnished'. Apartments advertised as 'furnished' might be fully furnished or may only include white goods. Cheaper and/or older apartments are less likely to have any furniture or kitchen appliances, and if they do, it's probably junk anyway.

A rough guide to apartment rents per year in different areas of Dubai (July 2007):

  • Studios from 35,000 dhs in Al Ghusais, Karama possibly Bur Dubai. Up to 70,000+ dhs in the Greens and Dubai Marina.
  • 1 bdrm from 45,000 to 85,000 dhs in Al Ghusais, Karama.
  • 1 bdrm from 65,000 to 85,000 dhs in Lamcy Plaza area and Bur Dubai.
  • 1 bdrm from 90,000 to 100,000 dhs in the Greens.
  • 1 bdrm from 90,000 to 110,000 dhs in Dubai Marina.
  • 1 bdrm from 95,000 dhs on Sheikh Zayed Road.
  • 2 bdrm from 80,000 (in Al Ghusais) to 160,000 dhs (Umm Suqeim).
  • 3 bdrm from 100,000 (in Al Ghusais) to 200,000 dhs (on SZR).
  • Bur Dubai 2 bdrm 120,000 dhs.
  • Karama 2 bdrm 100,000 dhs.
  • Jumeirah 2 bdrm 150,000 dhs.
  • Satwa 2 bdrm 110,000 dhs.

Expect to pay 5% of the first year's rent as a commision to the real estate agent if you use one. Also 5% as a refundable bond or security deposit. And the final sting in the tail comes from Dubai Municipality who want 5% of your annual rental also - sort of like a council tax. DEWA (Dubai Electricity and Water Authority) will collect it on their behalf. This is a recent development to try and get more tenants to pay since the collection rate has been very low in the past. Electricity and water may be disconnected if the DM tax isn't paid.

See where to live in Dubai for a little more information on the different areas in Dubai.

Apartments tend to be concentrated in

  • Al Ghusais - almost Sharjah prices and almost Sharjah location, not very central
  • Bur Dubai - good central location but with traffic problems
  • Deira - cheaper location but not so easy to find a good apartment
  • Dubai Marina - expensive but good location for free zones
  • the Greens - also a good location for the free zones
  • Karama - looks more run down than Bur Dubai but same area
  • Lamcy Plaza - good location and relatively good value compared to elsewhere in Dubai
  • Jumeirah, Umm Suqeim, and Mirdiff are popular areas with expats but have very few apartments.
  • Sheikh Zayed Road - between the Trade Centre and Defense roundabouts are tall, expensive apartment buildings with great views.
Shared Villas and apartments in Dubai
  • Some apartments are 3 and 4 bedrooms and often the main tenant or landlord will look to sublet spare rooms (if the rental contract allows this).
  • Another alternative to renting your own apartment is to look for a shared villa rentals as it can work out a little cheaper than apartment renting. An advantage is that rental can sometimes be paid monthly.
  • Areas such as Jumeirah, Umm Suqeim, Rashidiya, Satwa (not many) are popular choices.
  • Expect to pay 3000-6000 dhs per month per room, and allow another 200-500 dhs per month for utilities.
  • Villas (or houses) are usually spacious with plenty of bathrooms, there's a good chance you can find a room with an ensuite bathroom.
Key Money and Rent Caps

Supposedly illegal to ask for it, but often asked for and blatently advertised - especially in the case of commercial property. Rare or non-existent if you go through one of the more reputable real estate agents when looking for an apartment in Dubai.

Key Money has become more prevalent during 2006 with the combination of increased demand and not enough supply, and the caps on annual property rental increases.

  • Abu Dhabi announced a 7% rent cap in early November 2006.
  • Dubai had a 15% rent cap for 2006.
  • Dubai rent cap for 2007 of 7% but if rent was increased in 2006, no increase permitted for 2007. Announced in press on 02 January 2007.
  • Ras Al Khaimah announced a 15% rent cap on 15 Nov 2006. Validity period unknown at present.
Real Estate Agents fees and commissions, security deposits
  • If you find an apartment from a real estate agent, the commission charged to the tenant is usually 5% of a years rent, payable at the beginning of the tenancy. You should not be charged commission when renewing a lease for the same apartment - you can complain to the Dubai Rent Committee if an agent tries to.
  • A security deposit of 2-5% is also payable when you sign up to the rental contract.
  • To get electricity and water connected, you'll need to visit DEWA (Dubai Electricity and Water Authority) to sign up - they'll have their palms out for another 1000 dhs of your money as a deposit.
Dubai Municipality Tax or Housing Fee
  • There is a 5% tax on the yearly rent payable to Dubai Municipality (DM). Although many residents have avoided paying this for a number of years (and some haven't even heard of it), the Dubai Municipality is attempting to enforce collection of the tax via an arrangement with DEWA which will automatically add it to your utilities bill.
  • Residents are expected to register their rental contracts on the DM website to have the tax bill added to their DEWA bills.
  • From May 2010, the DEWA has reportedly been serving notices to residents who haven't registered their tenancy agreements with the DM.
  • After the second warning notice, the DM say they will use the RERA Rent Index to determine taxable amount if residents don't register their rental contracts, or if they attempt to shortchange the DM by registering a lower amount than they actually pay. And too bad if that means you end up paying more than if you'd declared the correct rent in the first place.
DM housing fee for empty apartments
  • The DM housing fee is payable even for empty apartments, if there is a DEWA connection, even if no one is paying any rent (which is usually the case when apartments are empty). Which doesn't really make sense since DEWA already charges subscribers for the water and electricity they use, and the DM fee is supposed to be a tax on residents using DM services such as beaches and parks (which you pay to enter anyway). Roads and public transport are looked after by the RTA, rather than the DM.
  • Abdullah/Abdulla Hashim Abdulghafoor/Abdulgafoor/Abdul Ghafoor, Head of Housing and Marketing Fees at the Dubai Municipality, said "Whether an apartment is rented out or remains vacant, one still has to pay the housing fee as long as he has a Dewa connection. There is no exemption. We are slowly covering all the areas - freehold and non-freehold - as per Dewa's billing cycle, " (Emirates Business report 10 August 2010).
  • Presumably no fee is payable if there is no DEWA connection then.
  • Villas weren't mentioned in the report but the way it was written, it sounded like they were included.
  • Mr Ghafoor in the same report also said Whether you are staying in a freehold or non-freehold area is not our concern, you have to pay for infrastructure being used across Dubai, " apparently indicating that he thinks empty apartments are the result of the occupants busily wearing out Dubai's infrastructure 24 hours a day instead of staying at home some of the time, so he'll get them anyway.
Apartment rentals in Dubai - short term



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