Dubai apartment rents down 18.4% in the first quarter of 2021

Dubai apartment rents down 18.4% in the first quarter of 2021

Housing costs in Dubai continued their downtrend in the first three months of the year, with overall residential rents falling by an average of 11 percent compared to last year, data from real estate consultancy ValuStrat showed. From January to March 2021, flats registered the sharpest fall in listed rents at 18.4 percent, although the cost of renting villas, which have gained popularity during the coronavirus pandemic, jumped by 3.9 percent. Some analysts have forecast continued pressure on the residential market this year as more housing supply comes on to the market and the population growth still faces some hiccups. For this year, estimated upcoming supply currently stands at 46,316 apartments and 10,563 villas and townhouses. Rental values, supply When compared to the previous quarter, Dubai's Q1 rents were “relatively stable,” ValuStrat said citing that the quarter-on-quarter decline was only less than one percent. As of the first quarter of 2021, average annual rents for studio apartments stood at 35,000 dirhams ($9,500), while one-bed flats cost an average of 52,000 dirhams, while three-bedroom apartments cost 114,000 dirhams to rent. Renting two-bed villas can set tenants back roughly 103,000 dirhams a year, while three-bed units would require a housing budget of 150,000 dirhams per year and four-bedroom