New tenants to pay higher rents in Dubai

New tenants to pay higher rents in Dubai

Experts say rental rates to remain elevated in the second half of the year, however, rental growth is expected to slow eventually

Jumeirah, Emirates Hills, Downtown Dubai, Arabian Ranches, Business Bay, Dubai Marina, and Discovery Gardens remained the preferred choices for renters in first half. — File photo

Published: Sun 14 Aug 2022, 5:32 PM

Tenants will continue to pay higher rents on new contracts in Dubai but hike on renewals will be capped by Real Estate Regulatory Authority (Rera) despite rising demand for apartments and villas in second half of 2022, experts say.

Analysts and executives said rents continued to notch double-digit jump in first half as landlords increased prices in the face of greater demand and a lack of available inventory, especially in popular villa communities. They expect rental rates to remain elevated in the second half of the year, however, rental growth is expected to slow eventually.

Haider Tuaima, director and head of Real Estate Research at ValuStrat, said Dubai’s residential rents were on average 20 per cent higher than last year.

"This rise is only applicable to new rentals, as renewed contract amounts are capped by the Rera rental calculator," Tuaima told Khaleej Times.

He said the current trend has already seen a