No surprise as more Dubai luxury homes fetch multi-million dirham rents

No surprise as more Dubai luxury homes fetch multi-million dirham rents

Rents in Dubai increased a staggering 27.2 per cent in Q3 of this year compared to 2022, with a year-on-year increase of more than 38 per cent for villa rents and more than 19 per cent for apartments.

Rentals stand at the highest level they have been in quite some time, which has led to a change to the calculations of both existing and prospective tenants. For the former, it makes more sense to renew existing contracts at a mutually agreed rate with landlords than to seek out a new tenancy.

And new tenants may need to reassess which communities or buildings align with their rental budgets. That hasn’t resulted in any loss of momentum for the city’s rental market, with transactions up by 22 per cent compared to Q3 last year. And as my own rental team can confirm, there is a very healthy appetite for high-value rentals in Dubai.

Multi-million dirham rentals

It was less than two years ago when the rise in rentals priced at Dh1 million was considered newsworthy. For rents to hit seven figures on a consistent basis was a rarity. Now, it is very much the norm, and the trend is for rents priced at over Dh5 million,