UAE real estate shows robust performance in Q1

UAE real estate shows robust performance in Q1

Appetite for new projects continues to grow, report shows

Dubai property, dubai real estate, property prices in Dubai, invest in Dubai

Published: Wed 3 May 2023, 1:05 PM Last updated: Wed 3 May 2023, 1:06 PM

The average rental rates in Dubai’s apartment and villa continued to record strong growth in Q1 2023, particularly in higher-quality developments, with quarterly increases of 4 per cent and 7 per cent, respectively, data showed on Wednesday.

According to Asteco Q1 2023 report, the annual rental growth in the villa segment was significant, at 25 per cent, while average apartment and office rental rates rose by 19 per cent.

“In the Dubai rental market, there has inevitably been a growing gap between landlord and tenant expectations. After burdening years of decreasing rent, many landlords have sought to benefit from favourable market conditions. This has resulted in attempts to secure significant rental increases at lease renewal,” the report by the real estate services company stated.

In Q1 2023, the Dubai market recorded a delivery of approximately 7,600 units matching the volume registered in the final quarters of 2022. The villa supply picked up significantly with approximately 2,150 units handed over, representing more than double (circa 1,000 units) in the previous quarter,