Tenants can now rent a studio apartment in International City for as little as AED26,500 a year – down from AED60,000 six months ago, according to a report in 7days.
Cheaper rents are attracting people from neighbouring emirates, like Sharjah and Ajman, because they can now afford Dubai prices.
Real estate agent Mohammed Iftekhar, from Heaven Homes Real Estate, told the paper rents are likely to drop further. “We can’t say to what extent the rents will fall,” he said.
“According to my estimates, at least 2,000 families moved to International City because of the low rents in the last two months. At the same time a lot of people left after losing jobs,” Iftekhar said.
“There is a lot of movement within the city. People are moving from one place to another,” he added.
A typical one bedroom flat in International City is currently being advertised for rent for AED42,000, down from an AED80,000 price tag last year, the paper reported.
Meanwhile, rents are dropping elsewhere in Dubai. A studio in Al Baraha is renting for AED26,000 a year while one in Al Qusais is going for between AED36,000-40,000 a year. A one bedroom in Al Qusais is priced at AED42,000 to AED45,000.