Dubai’s rental market continues its momentum, with average rents up 27% this year, with demand also receiving a major boost in line with strong economic activity in the emirate, according to Zoom Property Insights .
Average rental prices for apartments have reached Dh91,795, while villa rentals have increased to Dh274,740. This shows an increase of 27.5% and 25.7% in the two respective sectors, according to the survey.
However, due to rising prices, tenants are reluctant to move to a new home. That is why there is a decline in the number of new contracts and therefore the renewals are higher.
Ata Shobeiry, Managing Director of Zoom Property, believes that the rental property market will end the year strongly.
He said: “Dubai’s rental market is sailing, and the latest data reveals exactly that. 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 think 2022 will end on a very strong note for the rental market, as the 2022 FIFA World Cup Qatar is giving a noticeable boost to the short-term rental market.”
Maintaining its reputation, Palm Jumeirah continues to be the most sought-after area for rental properties in Dubai.
Referring to data from the third quarter of 2022, Zoom Property Insights claims that the average rent for apartments in Palm Jumeirah increased by 22 percent. Similarly, the villa segment in the community also showed a jump of around 32 percent.
In addition, Downtown Dubai recorded a significant increase of 24% in terms of average rental prices for apartments. Dubai Hills Estate, meanwhile, recorded the highest increase of 33% for rental villas in Dubai.
In addition to the aforementioned, JBR, Dubai Marina, Al Barari, Emirates Hills and Jumeirah Bay are among other areas that have seen an increase in demand for rental properties.
The outlook for Dubai’s rental market in 2023 looks positive. According to Zoom Property Insights, rents for apartments and villas in Dubai will continue to be high in the coming year, paving the way for an even stronger 2023.
“Dubai’s real estate market is attracting HNWIs and foreign investors due to the higher profitability and stability, and this will also affect the rental market. Despite rising rents, people will continue to move to Dubai, enjoying its style of exclusive living and exploring professional and entrepreneurial opportunities, which will ultimately benefit the wider economy,” concluded Shobeiry.
Dubai Marina, Al Barari, JBR, Dubai Hills Estate, Jumeirah Bay and Emirate Hills, among the main areas with the highest demand for rental properties in Dubai, continue the upward trend.
Copyright © 2022 Khaleej Times. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).