No slowdown in Dubai residential rents for H2-2023 even with all those new homes getting complete

No slowdown in Dubai residential rents for H2-2023 even with all those new homes getting complete

Dubai: Tenants in Dubai hoping for a slowing down in rental rises in the second-half of 2023 are unlikely to get their wish. Leases – new and renewed – in the coming weeks will see landlords getting their higher asking rates, whether it’s a home on the Palm or a newly delivered one in a mid-tier residential community in Arjan. The real estate consultancy CBRE found that by end May, average rents across Dubai grew by 24.2 per cent over a 12-month period. Other market sources say that even in those locations that had seen new properties delivered in the year-to-date, there has been not much of a slowing down on the rent increases. (Estimates suggest around 15,000-18,000 new homes were ready for occupation by end-users and tenants so far this year.) “It might take another 50,000-60,000 homes to make a difference and slow down the rental increases,” said a market analyst. “These need to be delivered within the next 12 months itself to really slow things down.” Will that happen? The consensus among industry sources is that an additional 25,000-30,000 homes will be ready by this year-end. And not enough to really slow down the rent hikes. Because demand