Dubai: Most affordable areas as rents set to rise further in 2023

Dubai: Most affordable areas as rents set to rise further in 2023

Recovery began after the pandemic as many foreign workers returned with the recovery in the job market, as well as inflow of HNWIs

Published: Sun 25 Dec 2022, 10:45 AM

Rents in Dubai will further rise in 2023, especially in the prime markets where demand is outstripping supply, while the affordable areas are likely to see moderate growth in rental

Rents in the emirate were on a downward trend since 2014 but recovery began after the pandemic, as many foreign workers returned with the recovery in the job market as well as the inflow of high-net-worth individuals to the market.

David Abood, partner at real estate consultancy Core, expects rents to rise across the board in 2023.

“The prime market is anticipated to continue witnessing higher rents as demand for this segment outstrips supply. With most of the upcoming supply handing over in the affordable and mainstream apartment districts, we expect this market segment to see relatively moderate rental increases,” said Abood.

Ayman Youssef, vice-president, Coldwell Banker sees luxury villas in prime locations such as Emirates Hills, and Palm Jumeirah picking up the most in terms of rentals next year.

“The major reason for this is the influx of wealthy migrants from Russia and Ukraine who are