The Dubai rental market continues its boost as the average rent witnesses a jump of 27 per cent this year, with the demand also getting a major boost in line with strong economic activity in the emirate, according to the Zoom Property Insights.
The average apartment rental prices have reached Dh91,795, while the rent of villas has jumped to Dh274,740. This shows an increase of 27.5 per cent and 25.7 per cent in both the respective sectors, according to the survey.
However, due to the rising prices, renters are reluctant to move to a new home. This is why there’s a decline in the number of new contracts, and hence, renewals are higher.
Ata Shobeiry, CEO of Zoom Property, is of the view that the rental property market will conclude the year on a strong note.
He said, “the Dubai rental market is cruising, and the latest data reveal exactly that. The prime areas, such as Palm Jumeirah, Downtown Dubai, Dubai Marina, and JBR, are performing exceptionally well, which is a great sign for the market. I believe 2022 will end on a very strong note for the rental market as FIFA World Cup 2022 Qatar is giving the short-term rental market a remarkable boost.”
Popular areas in demand
Maintaining its reputation, Palm Jumeirah continues to be the most in-demand area for rental properties in Dubai.
Referring to Q3, 2022 data, the Zoom Property Insights state that the average rent for apartments in Palm Jumeirah rose by 22 per cent. Similarly, the villa segment in the community also showed a jump of around 32 per cent.
Besides that, Downtown Dubai recorded a major increase of 24 per cent in terms of average rental prices of apartments. Dubai Hills Estate, on the other hand, recorded the highest increase of 33 per cent for rental villas in Dubai.
Besides the aforementioned, JBR, Dubai Marina, Al Barari, Emirates Hills, and Jumeirah Bay are among other areas that have witnessed an increase in demand for rental properties.
Outlook for 2023
The outlook for Dubai rental market in 2023 looks positive. According to the Zoom Property Insights, the rent for apartments and villas in Dubai will continue to remain elevated during the next year, paving the way for an even stronger 2023.
“Dubai property market is attracting HNWIs and foreign investors due to higher returns and stability, and this is going to impact the rental market as well. Despite the increase in rents, people will continue to relocate to Dubai, enjoy its upscale lifestyle, and explore professional & entrepreneurial opportunities, which, ultimately, will benefit the overall economy”, Shobeiry concluded.
• Tenants are reluctant to move to a new home due to rising rents
• The average villa rent has increased by 25.7 per cent, while the rent for apartments has risen by 27.5 per cent
• A decline in the number of new contracts recorded due to increase in rents
• Palm Jumeirah, Downtown Dubai, Dubai Marina, Al Barari, JBR, Dubai Hills Estate, Jumeirah Bay, and Emirate Hills among the top areas with the highest demand for rental properties in Dubai
• 2023 is expected to continue the upward trend