Rent in Dubai is rising at the quickest rate since October 2014
According to the June 2022 version of the Dubai Residential Market Snapshot provided by CBRE, rental and villa rentals in Dubai are rising at the fastest rate since late 2014. The average rental and villa rentals in May 2022 were AED 83,485 and AED 249,677 per annum, respectively.
Taimur Khan, the head of Research – MENA at CBRE in Dubai, stated: “The rate of growth for rentals has continued to rise on a yr-on-yr basis, with common rents increasing by 19.1 percentage, up from 16.2 percentage reported a month earlier, which is the quickest rate of increase since October 2014.”
In the condominium market, the very best common yearly rental and villa rentals were decided in Palm Jumeirah, where asking rents on common were AED 213,761, and Al Barari, where asking rents on common was AED 874,171. The total number of transactions in Dubai’s residential market reached 5,542 in May 2022, up 33% over the previous year.
Off-plan earnings increased by 55.4% over this period, while secondary market earnings increased by 18.0%.
“Transaction activity in Dubai’s residential sector continues to be on a solid foundation,” Khan noted, “with overall transaction volumes within the year thus far to May 2022 reaching 30,903, the highest total recorded since 2009.” Total transaction volumes throughout the year thus far to May 2022 hit 30,903, the highest total recorded since 2009 over this period. In the year from May 2022 to May 2023, average property costs increased by 9.9%. During this period, average rental rates increased by 9.6 percent, and average villa charges increased by 19.8 percent.
In May 2022, the average rental rate in Dubai was AED 1,102 per square foot, while the average villa charge was AED 1,307 per square foot.
Price growth has also remained solid, even though the rate of increase has slowed significantly from a month before, when common income charges climbed by 9.9% in the three hundred and sixty-five days to May 2022,” Khan added.
In comparison to the highs seen in late 2014, those costs per square foot are 25.9% and 9.5% lower for houses and villas, respectively.
Downtown Dubai had the highest average income price per square foot in the residential portion of the market, at AED 2,045.
Palm Jumeirah had the highest average income price per square foot in the villas portion of the market, at AED 3,207.
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