Dubai rents at near-historic highs; may start to moderate

Dubai rents at near-historic highs; may start to moderate

Rents in Dubai continue to register near record growth and may start to moderate subsequent to increased supply in the near future, property market experts forecast.

Average rents in Dubai surged year-on-year to 24.8 per cent in August 2022, up from 23.7 per cent a month earlier, according to CBRE data.

“The growth rate of rents, on a month-on-month basis, has slowed for three consecutive months now, indicating we may see the rental growth rate start to moderate in the not too distant future,” said Taimur Khan, head of research – Mena at CBRE in Dubai.

In the year to August 2022, average rentals rose by 24.8 per cent. Over this period, average apartment rents increased by 24.9 per cent and average villa rents by 24.2 per cent. As of August 2022, the average annual apartment and villa rents reached Dh87,774 and Dh263,034, respectively, said Khan.

The highest annual apartment and villa rents were respectively seen in Palm Jumeirah, where average rents reached Dh222,870, and in Al Barari, where average rents reached Dh935,046.

Ata Shobeiry, chief executive of Zoom Property, said the increase in average property prices across all segments depicts the Dubai property market continuing its golden run during the second half of the