Why let unfurnished in Dubai?
Unfurnished properties attract tenants who intend to stay in Dubai for an extended period. They invest in their own furniture and are therefore less inclined to move. The average tenancy for unfurnished lettings is two to three years, compared with one to one and a half years for furnished.
Moreover, you incur no costs for furniture, depreciation or inventory damage. Maintenance is limited to the fixed installations: kitchen, bathroom, air conditioning and flooring. This keeps management costs predictable and low.
Unfurnished rents and returns
The rent for an unfurnished property is 10–20% lower than furnished, but the net costs are also lower. An unfurnished one-bedroom apartment in Dubai Marina lets for AED 60,000–80,000 per year, in JVC for AED 40,000–55,000 and in Downtown for AED 80,000–110,000.
Because you do not need to purchase furnishings (a saving of AED 15,000–45,000) and carry no annual depreciation, the net yield of unfurnished letting can over the long term be comparable to, or even higher than, furnished.
Tenant profile
The typical tenant of an unfurnished property is an established expatriate family that has lived in Dubai for several years, or a professional moving from another home in Dubai who brings their own furniture.
These tenants are generally financially stable, have a proven rental history and are seeking a long-term solution. Companies arranging accommodation for senior staff often choose unfurnished because they provide a relocation budget for the interior.
Contract terms and handover
With unfurnished letting, the property does include the fixed kitchen appliances (built-in oven, hob, extractor) and bathroom fittings. In new builds, built-in wardrobes are also standard.
The tenancy contract is registered through Ejari and the standard security deposit is 5% of the annual rent for unfurnished properties. At handover, a detailed inspection report is prepared documenting the condition of all fixed installations.
Tenants are responsible for purchasing and maintaining their own furniture. On departure, they must return the property in its original condition, excluding normal wear and tear.