Dubai Real Estate: Rents Jump Over 20% In 2023

Dubai Real Estate: Rents Jump Over 20% In 2023

Rent prices for residential units in Dubai grew by 22 percent during the first half of the year, a new report finds.

During this period, average apartment rents grew by 21.9 percent and villas by 22.6 percent, according to real estate firm.

The rental price growth was slightly down from the 22.8 percent recorded in June 2023. However, demand in the rental market increased further, said Taimur Khan, the firm’s Head of Research for the MENA region in Dubai.

“Demand in the rental market has also increased further, where year-on-year in the year to date to July 2023, the total number of rental registrations has grown by 8.8 percent,” said Khan.

Though the total number of new rental contracts registered substantially dropped by 12.6 percent, renewed rental registrations rose by 29 percent.

“Given the current market backdrop, vis-à-vis the lack of supply and exacerbated demand levels, we expect that rents in Dubai will continue to increase moving forward, albeit at a slower pace,” he added.

Dubai’s property sector is experiencing remarkable growth, with the total volume of residential transactions reaching an impressive 10,080 in July 2023. This marks a substantial year-on-year increase of 53.4 percent, fueled by a surge in both off-plan market sales, which soared