Rents in Dubai are growing rapidly, with average annual rents increasing by 1.5% month-on-month to Dh99,737 in February.

Data from Zoom Property Insights shows that average annual rents for flats and villas have risen to Dhs100,000 and Dhs295,000 respectively.

The Palm Jumeirah, an iconic neighbourhood in Dubai, is home to some of the most expensive rental properties in the city, with the average annual rent for a flat at Dhs260,000 and an average annual rent for a villa at Dhs1 million.

Ata Shobeiry, CEO of Zoom Property, believes that rising demand is the main reason for the increase in rents in Dubai.

He said, "Dubai continues to attract high net worth individuals and tourists from around the world, which has led to an increase in demand for rental properties. This upward trend is expected to continue throughout the year".

According to Zoom Property Insights, Jumeirah, Palm Jumeirah and Downtown Dubai continue to dominate the popular areas for flat rentals in Dubai. The average rent per square foot in these areas increased to AED 2390, AED 2210 and AED 2280 respectively.

Dubai Hills and MBR City, with an average rental rate of AED 1,740 per square foot, as well as Business Bay (AED 1,660 per square foot) and Jumeirah Beach Residences (AED 1,520 per square foot) are the other popular areas for flat rentals in Dubai.

In terms of villas, Palm Jumeirah, Emirates Hills and Jumeirah lead the way with average rents of Dhs4,310, Dhs2,450 and Dhs2,325 per square foot respectively.

Zone 1 (Dhs2,100 per square foot), Dubai Hills (Dhs1,780 per square foot) and MBR City (Dhs1,170) also remain popular with tenants of rental villas in Dubai.

"Rising rents in Dubai have led to a decrease in the number of new leases. Due to rising rents and global inflation, many tenants now prefer to renew their existing leases rather than rent a new property. However, despite this, there are still many people renting in Dubai due to its economic growth, upscale lifestyle and career opportunities." Shobeiry concluded.