The rental premium of furnished letting
A furnished one-bedroom apartment in Dubai Marina lets for AED 75,000–95,000 per year, compared with AED 60,000–80,000 for the same unit unfurnished. This translates into a premium of 10–20% on the annual rent.
The premium is highest for studios and one-bedroom apartments (15–20%) and decreases for larger units (10–15% for two-bedroom, 8–12% for three-bedroom). This is because larger properties are more often rented by families who bring their own furniture.
Furniture packages and interiors
We work with local interior firms that offer complete furniture packages designed specifically for the rental market. Packages range from AED 15,000 for a studio package to AED 45,000 for a full two-bedroom package, including sofa, dining table, beds, wardrobes, kitchen appliances and basic accessories.
It is important to choose durable, neutral furniture in light colours. Fashionable designer pieces may look attractive but wear quickly and do not appeal to every tenant. Hotel-style interiors perform best on the rental market.
Tenant profile for furnished rentals
The typical tenant of a furnished property in Dubai is a single professional or young couple, new to the city, employed by a multinational or in the technology sector. They seek a move-in-ready home without the effort of buying furniture.
There is also demand from companies seeking temporary accommodation for project staff, and from expatriates spending a trial first year in Dubai before making a long-term decision. This tenant profile is generally affluent and reliable.
Depreciation and replacement costs
Furniture in a rental property wears faster than in an owner-occupied home. Expect an average lifespan of three to five years for sofas and mattresses, five to eight years for wardrobes and tables, and two to three years for electronics and kitchen appliances.
On an annual basis, depreciation amounts to approximately AED 5,000–8,000 for a fully furnished one-bedroom apartment. This should be factored into the yield calculation. The net advantage of furnished letting after depreciation typically remains 5–12% above unfurnished.
Our furnished rental service
Augusta Properties advises on the optimal interior, coordinates the furnishing and manages the complete letting and administration of your furnished unit. We conduct a detailed inventory inspection at every tenant changeover and track the condition of the furnishings.
In the event of damage to furniture, we recover the costs from the tenant's security deposit. We recommend a deposit of at least AED 5,000 for furnished apartments, in addition to the standard deposit of 5% of the annual rent.