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2nd November 2023

Renting in Dubai – The Costs

buying in Dubai

Renting in Dubai – The real Costs

Dubai Skyline

Dubai SkylineRenting In Dubai – Your most significant expenditure is typically associated with housing, making it a top priority on your budgetary checklist. If you are renting in Dubai, housing costs fluctuate depending on factors such as location, size, and amenities. It’s worth noting that luxury communities can command nearly four times the cost of average, more affordable alternatives.

Renting in Dubai

Renting is a prevalent choice, especially among the expatriate community in Dubai. The city offers a wide array of rental options, spanning from chic studio apartments to spacious villas ideal for families. These choices accommodate diverse budgetary needs, with pricing varying from budget-friendly to high-end, contingent upon the desired location within Dubai.

Studios vary in budget from AED 40,000 to 100,000
2 bedrooms can vary from AED 60,000 to 300,000

Villas start from AED 200,000 to over AED 1,000,000.

What can affect the value?

As with real estate markets worldwide, several factors can influence the valuation of your property in Dubai. These factors encompass crucial elements like location, property size, and amenities, including features like a pool, among others.

Location, Location, Location.

The significance of location cannot be overstated regarding rental prices in Dubai. The city is divided into distinct communities, each offering its unique characteristics.

Proximity to iconic landmarks and sought-after areas like the Marina and Downtown has a direct impact on rental values due to the convenience and accessibility to nearby amenities. Downtown, in particular, enjoys immense popularity because of its immediate proximity to Dubai Mall and the iconic Burj Khalifa.

Size does matter

The size of a property is a key determinant in the calculation of rental costs. Larger properties provide more rooms and increased square footage, increasing rental prices. Additionally, penthouses or apartments situated on higher floors often command a premium compared to those on lower floors.


The facilities and amenities available within your residential community are significant factors that contribute to the overall quality of life. In Dubai, most buildings and communities offer a range of amenities, including swimming pools, gyms, parks, and 24/7 security. Properties that are well-maintained and provide these desirable amenities typically come with higher rental costs.

To be furnish or to be unfurnished.

Furnished properties in Dubai tend to command a premium in rental costs due to their all-inclusive nature, allowing you to move in right away without the need for additional expenses on appliances or furnishings. On the other hand, renting an unfurnished property will require you to budget for the purchase of appliances and furniture.

Regarding rentals, it’s important to be aware of various associated fees. Here’s a breakdown of the fees you can anticipate:

Security deposit

The security deposit typically amounts to 5% of the annual rent for unfurnished properties and 10% for furnished ones. This deposit is a standard requirement in the renting process, serving to protect the landlord against potential future damages. At the end of the tenancy, the deposit is refundable, with any deductions made for any damages incurred during the rental period.

Agent fees

With Dubai’s substantial expat community and a continuous stream of newcomers, the real estate market teems with numerous agents eager to offer their services. Nonetheless, it’s crucial to exercise caution, as not all of them hold the necessary licenses or maintain a reputable track record. It is imperative to engage the services of a licensed agent. Their fees typically amount to 5% of the annual rent.

Ejari Registration

Ejari, the online system for regulating rental contracts, mandates that all rental contracts must be registered with it.

  • 100 AED for registration of tenancy contracts
  • 10 AED for the knowledge fee
  • 10 AED for innovation fee

DEWA Connection

DEWA is Dubai Electric Water Authority. When you move, you’ll need to cover an activation connection fee, and the amount varies based on the type of property.

  • Apartments: AED 2000
  • Villas and Townhouses: AED 4000

The DEWA deposit is refundable but the below are non-refundable activation charges.

  • Connection of Meter: AED 100 –  300
  • Registration fee: AED 10
  • Knowledge fee: AED 10
  • Innovation fee: AED 10

Chiller Fees

A/C is a must in Dubai, with temperatures reaching upwards of 45 Degrees you can imagine you’re A/C will be doing overtime.

Chiller fees cover the cost of your a/c for the property, they are based on the unit size. The main providers are Empower and Emicool.

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