15% growth in rent in Dubai since the beginning of 2022

D + D – Normal size

Real estate experts explained that the residential rental rate in Dubai has increased by 15% since the beginning of this year compared to the same period last year. Increased from 20% to 35%.

In their reports to Al-Bayan, they explained that the most important residential areas that have recorded the highest rental growth rates so far are mainly the Palm Jumeirah, Dubai Marina and Downtown Dubai. In addition to the positive effects of the new formal entry visa to enter the United Arab Emirates, working in the light of government initiatives that have improved opportunities and accelerated economic growth, thanks to its growing attractiveness as a preferred place to live.

Villa complexes

Helen Datum, head of sales and leasing for residential communities at real estate consulting firm “Sewels”, said the company’s data showed that average real estate prices in Dubai rose 15% at the end of the first quarter of 2022. On an annual basis.

Rents have generally increased across the emirate, but are at varying rates across sectors and communities. For example, the luxury villa rental market has grown by about 20% – 25% over the past year due to supply shortages and high volume. Demand, especially from new European residents. Based on the first date of the year, rents in selected luxury villa communities increased by 21%.

He added, “Hydrological properties have always been very popular, but now they are in high demand. Properties with access to nearby beaches and retail outlets perform well. Demand is growing for villa communities such as Al Barari, Dubai Hills and The Maiden, which have large villas. Dubai Marina and Downtown Dubai are central places and appreciated, but the villa communities are not as significant.

He noted that the increase in prices and rents in villas and townhouses was greater than in apartments, due to the strong demand for additional and outdoor space, but also due to the increase in apartments, the mismatch between supply and demand. , Especially in the field of villas and houses, is largely responsible, about the rise in prices and so on. The current supply in the sector is declining and with the forthcoming limited supply, the demand for the apartment sector is expanding with the benefit of larger apartment complexes, and the new levels achieved by rent are expected to continue throughout this year.

Maximum increase

According to Gaurav Aitasani, Founder and Managing Director of Union Square Real Estate Brokerage, rents in Dubai have risen by 10% to 15% since the beginning of this year compared to the same period last year. In areas such as Downtown, Marina and Palm Jumeirah and 5%, Palm Jumeirah and Downtown Dubai have recorded the highest rent rates in Dubai since the beginning of this year, while villas and hotel apartments have recorded the most. The high rent increase so far, due to the large number of tourists, the rapid increase in population and the increase in demand for short-term rentals are the most important factors for the increase in rent.

In turn, Tamara Gitegeva, CEO and partner of Mira Real Estate Brokerage, explained that there is currently a significant shortage of luxury homes in the Dubai real estate market and, as a result, landlords are getting better rental income as rents increase. Ocean-facing luxury villas in Dubai range from 30% to 35%. He pointed out that the Palm Jumeirah, Bulgarian Island and Dubai Hills estate villas have reached higher rents in Dubai since the beginning of this year, and that apartments that have not seen the sea, villas and luxury palaces have seen higher rents so far. It comes in the light of the arrival of wealthy and men businesses from all over the world living in Dubai.

Quality of life

Chestertons Chris Hopton, strategic adviser to the Middle East and North Africa, estimates that rents in Dubai will increase by 6.9% between January and April 2022, compared to the 1.3% increase recorded last year, with Dubai Marina, Palm Jumeirah and Downtown Dubai at 12.3%. , The main residential areas saw an average rent increase, rising to 11.4% and 10.7%, respectively.

He pointed out that the performance of villa rents continued to be better than the residential average in 2021, and that apartment prices have risen by 6.3% so far this year, an increase of 7% compared to the number of villas at 6.3%. , Such as a tower caliph have become especially popular in recent months.

Hopton explained that the most important factors for the increase in rent are the new visas introduced in addition to the quality of life and Dubai’s vast economic opportunities, which are reflected in the growth of the number of new residents in Dubai. Enjoying. He added, “The Dubai Purchasing Managers’ Index, a key measure of public business conditions, reached its 33-month high last March, which helped boost the performance of the non-oil private sector to date.”

Request recovery

The real estate sector in Dubai is currently in strong demand, which is reflected in the recovery in rent rates, says Faraz Ahmed, senior assistant research director at JLL MENA, who said the average rent in Dubai has risen by 13 per cent. The first four months of 2022 are compared to the same period last year, according to data provided by the company “Reiden”, which specializes in statistics.

He pointed out that compared to January 2022 and April 2022, the key areas that comprise the group of different residential segments in Dubai were the areas that saw the highest increase in rent rates. In terms of residential flats, the Dubai Marina area recorded a 12% increase, and downtown Dubai 11%, the Palm Jumeirah Island 11%, and the villas area, the Emirates Hills area 13%, the Green Community 12%, and the Jumeirah Islands 12%.

He explained that the villa sector is performing better on an annual basis as it has achieved a growth of 23% in rental value in the first four months of 2022. Apartment rents increased by 11% year-on-year and the average rent Emirate level by 13%.

He pointed out that long-distance work during the “Govt 19” epidemic contributed to a significant recovery in the prices of villas and townhouses, and since then the continued growth of the emirate’s economy has been recorded in various sectors and driven by various government initiatives. , And the ability to afford housing costs.

Follow the economic report through Google News