Realty Check: Dubai residential rents witness record increase since 2015

  • Date: 24-Oct-2021
  • Source: Zawya
  • Sector:Real Estate
  • Country:UAE
  • Who else needs to know?

Realty Check: Dubai residential rents witness record increase since 2015



Asking residential rents in Dubai have leapfrogged and moved at the highest pace in five years, according to a new ValuStrat report.

Average annual rents stood at 78,181 UAE dirhams ($21,000) during the third quarter of 2021, up 6.9 percent compared to the same period last year, a record increase not seen since early 2015, the consultancy firm said.





On a quarterly basis, citywide rents were up 3.6 percent. The most notable increases, however, were reported in the villa segment of the market, which continued their rally upwards in the third quarter, rising by 14.1 percent, while apartment rents went up by just 2.6 percent compared to a year ago.





Studio apartments now cost around 36,000 per annum on average, while one-bed and two-bed flats are estimated to cost around 53,000 dirhams and 76,000 dirhams per year, respectively.

Dubai’s residential rents had been on a decline prior to the coronavirus pandemic due to housing demand not keeping with supply. The trend continued in 2020, when thousands of residents lost jobs as result of the pandemic.

Recovery 



With the massive vaccination campaign, the economy is starting to show signs of improvement. Dubai’s Department of Economic Development (DED) has predicted that the economy could growth 3.1 percent this