Dubai: Most locations in Dubai saw residential rents edged further south in the second quarter, with some sought-after communities posting noticeable reductions of nearly 7 per cent, as new developments spring up.

Researchers at a property portal have tracked the price movements in popular communities in Dubai and found that Jumeirah Lakes Towers (JLT), Business Bay, Downtown Dubai and Dubai Marina now offer more affordable choices. Depending on the size of the property, rents in these major locations have dropped between 0.21 per cent and 6.04 per cent, according to Bayut.com.

The good news for UAE residents with huge families is that they can find cheaper spaces to rent in JLT, where three-bedroom apartments posted the biggest decline at 6.3 per cent, from Dh195,175 in the first quarter to Dh182,702 in June. One-bedroom flats in the same area have also declined by 3.99 per cent.

The declines have been attributed to the shift of tenants to newer buildings or spaces that offer more square footage for a similar price. “Landlords of vacant properties have refrained from jacking up rents in order to ensure occupation and thus the data shows declines in the one- and three-bedroom categories,” said Haider Ali Khan, the company’s CEO.

However, JLT is not highly recommended for those looking for smaller spaces, as studios and two-bedroom properties have become more expensive, up by 3.51 per cent and 1.19 per cent, respectively.

Khan said that JLT is becoming increasingly popular among the upper or middle-income residents of Dubai, causing a couple of categories to post some increases. “JLT is generally a residence of choice for the upper-middle class of Dubai.”

Another highly sought-after location due to its luxury properties and proximity to Dubai Mall, Shaikh Zayed and Dubai International Financial Centre (DIFC), Downtown Dubai posted the second biggest decline of 6.04 per cent for two-bedroom flats, which are now more than Dh10,000 cheaper, from Dh220,790 to Dh207,445. Three-bedroom apartments in the area, which are still higher compared to other communities, have dropped by 5.68 per cent, from Dh326,230 to Dh307,706.

A collection of properties in Business Bay, such as three-bedroom and one-bedroom flats, have increased marginally by 1.28 per cent and 1.05 per cent respectively, but studio apartments have registered a noticeable price reduction of 3.2 per cent, while two-bedroom flats dropped by 0.62 per cent, making the area ideal for singles or those who are on the hunt for small to medium-size apartments.

Business Bay is also gaining popularity due to the development of the Dubai Canal and several other residential and commercial buildings. “The master developers went further to develop family parks to facilitate the flow of families into the area,” Khan said.

Noted for its “high-end lifestyle and unique charm”, Dubai Marina also offers affordable choices, especially for those who are looking for really big apartments. Three-bedroom flats in the area dropped by 1.47 per cent, from Dh232,696 to Dh229,277, which are also cheaper than those in Downtown Dubai.

All the other categories, however, posted some increases, with studio apartments going up by .21 per cent, one-bedroom by 0.63 per cent and two-bedroom by 1.83 per cent. Obviously, this side of town is gaining much interest from residents looking to rent small to medium-size properties.

“Offering yacht docking areas and the man-made marina at the foot of the Palm Jumeirah while being located along Shaikh Zayed Road are the main ingredients that make it the most popular locality among tenants.”

Just next to Dubai Marina, Jumeirah Beach Residence (JBR) apartments have also registered price declines of 7 per cent, as well as Shaikh Zayed Road (7 per cent) and Palm Jumeirah (6 per cent), according to Asteco.

“We even saw a 6 per cent decline for Palm Jumeirah, with the handover of the lower specification Palma Residences’ townhouses impacting rental rates due to their lower price brand,” said John Stevens, managing director, Asteco.

According to Asteco, rents in the villa segment, dipped by 7 per cent quarter-on-quarter and 15 per cent year-on-year, thanks to the handover of projects like Casa Villas at Arabian Ranches.

The handover of three and four-bedroom townhouses at the Mudon community, which offers competitive pricing at Dh175,000 per year, has put pressure on landlords of neighbouring areas to secure and retain existing tenants.