T+ T- normal size
The real estate experts revealed that the rate of residential rents in Dubai has increased since the beginning of this year by up to 15% compared to the same period last year. They explained that the rents of luxury villas, in particular those with views of the sea and waterfronts have increased to levels ranging from 20% to 35%.
In statements to Al-Bayan, they explained that the most important residential areas that have seen the highest rental growth rates to date are mainly Palm Jumeirah, Dubai Marina and Downtown Dubai. They pointed out that the rise in rents in general in Dubai comes mainly thanks to its growing attractiveness as a preferred destination to live and in light of government initiatives that have improved opportunities and accelerated economic growth, in addition to the positive effects of the new system of entry visas to the UAE.
Helen Tatham, head of the residential communities sales and lettings department at real estate consultancy Saveles, pointed out that the company’s data at the end of the first quarter of 2022 showed an increase in average property prices. in Dubai by 15% on an annual basis.
She explained that rents in the emirate have increased in general, but at varying rates depending on the sectors and communities. For example, the luxury villa rental market has seen increases of around 20% to 25% over the past year due to a lack of supply and high demand, especially new European residents. Year-to-date, rents have risen 21% in some luxury villa communities.
She added: “Waterfront properties have always been very popular, but now they are more in demand. Properties that have access to nearby beaches and retail are doing well. The demand for villa communities such as Al Barari, Dubai Hills and The Meydan which have larger villas is increasing. Dubai Marina and Downtown Dubai are central locations and have been appreciated, but not as much as the mentioned villa communities.
She pointed out that price and rent increases in villas and townhouses were higher than apartments, partly due to high demand for more additional and outdoor space, but also due to availability. increase in apartments, noting that the mismatch between supply and demand, particularly in the sector of villas and houses, is largely responsible for the rise in prices and therefore in rents. The current supply in this sector is decreasing and with the limited supply to come, which indicates the expansion of demand for the apartment sector in favor of larger apartments, and expects the new levels reached by rents continue throughout this year.
For his part, Gaurav Aidasani, founder and managing director of real estate brokerage Union Square, said that the increase in rents in Dubai since the beginning of this year until now compared to the same period last year ranges between 10% and 15% in major areas such as Downtown, Marina and Palm Jumeirah, and 5% in other areas, explaining that Palm Jumeirah and Downtown Dubai have seen the highest increase in rent levels in Dubai since the beginning of this year, while the categories of villas and hotel apartments recorded the highest rent increases to date, highlighting that the most important factors for the increase in rents are the rapid increase in the population and the increased demand for short-term rentals due to the high number of tourists.
In turn, Tamara Gitegeva, CEO and Partner, Mira Real Estate Broage, explained that the real estate market in Dubai is currently experiencing a significant shortage of luxury accommodation and as a result landlords are receiving a distinguished rental yield as the increase rents for luxury sea view villas in Dubai has reached 30% to 35%. She pointed out that the Palm Jumeirah, Bulgari Island and Dubai Hills Estate villas have reached the highest rent levels in Dubai since the beginning of this year, and that the sea view apartments, villas and luxury palaces recorded the highest rent increases to date, and pointed out that this comes in light of the influx of wealthy and business people from around the world to reside in Dubai.
quality of life
While Chris Hobden, head of strategic advice at Chestertons Middle East and North Africa, estimated that housing rents in Dubai rose by 6.9% between January and April 2022, compared to a 1.3% increase recorded over the period last year, explaining that the main residential areas saw an increase in average rents, while Dubai Marina, Palm Jumeirah and Downtown Dubai saw increases of 12.3%, 11.4% and 10.7%, respectively.
He pointed out that rental performance for villas has consistently exceeded the residential average in 2021, while apartments have seen higher growth so far this year, rising 7%, compared to villas at 6.3%. , pointing out that luxury apartments facing the seafront or prominent views, such as a Khalifa tower, have been particularly popular in recent months.
On the most important factors for the rise in rents, Hobden explained that they are embodied in the growth in the number of new residents in Dubai thanks to the new visas that have been launched in addition to the quality of life and the wide opportunities. economic that Dubai enjoys. He added: “Improving performance in the non-oil private sector has helped fuel the upside to date, as the Dubai Purchasing Managers Index, a key measure of general business conditions, hit its highest level in 33 months last March”.
resumption of demand
The real estate sector in Dubai is currently experiencing strong demand, which is reflected in the recovery in rental rates, according to Faraz Ahmed, senior deputy director of research at JLL MENA, who indicated that average rents in Dubai have increased by 13%. . the first four months of 2022 compared to the same period last year, according to data published by the company “Reiden” specializing in statistics.
He pointed out that the main areas of Dubai, which include a cluster of various residential units, were among the areas that saw the greatest increase in rent rates, comparing January 2022 to April 2022. In terms of residential apartments, the Dubai Marina area recorded an increase of 12%, and Downtown Dubai 11%, Palm Jumeirah Island 11%, and at the villa level, the Emirates Hills area recorded an increase of 13%, the Green Community 12%, and the Jumeirah Islands 12%.
He explained that the villa sector was the best performer on an annual basis, as it achieved rental value growth of 23% in the first four months of 2022. Apartment rents also increased on an annual basis. by 11% and the average rent at the level of the emirates increased by 13%.
He pointed out that remote working during the “Covid 19” pandemic period has contributed to a remarkable recovery in the prices of villas and townhouses, and since then a continuous growth of the economy of the emirate has been recorded. in various sectors, driven by various government initiatives. , and the relative ability to afford housing costs.
Follow the economic statement via Google News