Dubai real estate: Rents up 27.3% this year amid property boom
15 November 2022 – Arabian Business – www.arabianbusiness.com
The average price of renting property in Dubai went up by more than 27% amid a sharp increase in demand for Dubai real estate, according to information released by CBRE.
The number of new contracts has seen a decline and renewals are higher as renters are less willing to move amid the rocketing prices.
In its monthly Dubai Residential Market Snapshot CBRE noted that average rents in the emirate have increased by 27.3% in the year so far.
The average price of renting an apartment went up by 27.5% and average villa rents hiked 25.7%.
As of October, the average annual apartment and villa asking rents reached AED91,795 and AED273,740, respectively.
The highest average annual apartment and villa rents were respectively seen in Palm Jumeirah, where average rents reached AED 242,250 on average, and in Al Barari, where average rents registered AED 956,174.
Taimur Khan, Head of Research – MENA, CBRE said: “Residential rents in Dubai increased by 27.3% in October 2022 compared to a year earlier, extending on the record high annual growth we saw in the month prior.
“Ejari data shows that the number of new contracts registered year-on-year in the year to date to October 2022 fell by 4.7%, whereas renewals have increased by 33.6%, indicating that tenants are less willing to move given current market conditions, not surprising given that the number of listings are down 6.7% month-on-month.
“We expect the rate of change in the rental market to start tapering off by the end of 2022.
Dubai real estate sales
In the sales market, however, average prices rose by 9.2%, in the year to October, with villas faring slightly better with an average increase of 13% compared to 8.5% for apartments.
In Dubai, average apartment prices reached AED 1,149 per square foot, and average villa prices AED 1,359 per square foot.
“In the sales market, 8,269 transactions were recorded in October 2022 a 72.5% increase from the year prior,” said Taimur Khan.
A total of 71,412 transactions were recorded in the year to date to October 2022, to put this into context, in 2019 this figure totalled 29,394. In terms of transaction volumes for the year, we expect 2022 total transactions to comfortably surpass the 2009 total.”
Jumeirah was home to the most expensive location for apartments, with an average price of AED2,226 per square foot, while Palm Jumeirah remains the most expensive location for villas in Dubai with an average price of AED 3,704 per square foot.
In the 12 months to October 2022, average rents increased by 27.3%, where average apartment rents rose by 27.5% and average villa rents by 25.7%.
As of October 2022, the average annual apartment and villa asking rents reached AED 91,795 and AED 273,740, respectively.
The highest average annual apartment and villa rents were respectively seen in Palm Jumeirah, where average rents reached AED 242,250 on average, and in Al Barari, where average rents registered AED 956,174.
Dubai has reached a 12-year high in the third quarter in terms of volume and value of the sale of off-plan and secondary properties, according to a report by ZāZEN Properties.
