According to ValuStrat's third-quarter report, residential rents in Dubai rose by 27.2% compared to the same period last year in the third quarter of 2023. Rent increased by 2.1% compared to the previous quarter. The annual growth rate for villa rents was 38.7%, with little change compared to the previous quarter.

Specifically, the annual average rent for three-bedroom villas was 312,000 dirhams, 383,000 dirhams for four-bedroom villas, and 492,000 dirhams for five-bedroom villas. Asking rents for apartments increased by 19.1% year-on-year and 3.6% quarter-on-quarter.

The annual average rent for studio apartments was 51,000 dirhams, 75,000 dirhams for one-bedroom apartments, 111,000 dirhams for two-bedroom apartments, and 170,000 dirhams for three-bedroom apartments. It was estimated that the residential occupancy rate in Dubai in the third quarter was 88.9%.

Another report from Savills indicated that as of September 2023, the average residential prices in Dubai had increased by 19.6%, with apartment and villa prices rising by 19.7% and 18.9%, respectively.

The report noted that despite relatively high demand, the leasing market was showing further signs of slowing down. The year-on-year rental growth rate had slowed down, with average residential rents in Dubai increasing by 20.6% in the year leading up to September 2023, lower than the 21.7% growth rate a month earlier.

Furthermore, a report by Allsopp & Allsopp indicated an average 21% decrease in rents in major residential communities in Dubai in the third quarter of 2023. However, the report also highlighted an increase in leasing transaction volumes in the rental market during the summer of this year.

Specific data showed a 20% increase in leasing transaction volumes from July to September and a 29% increase in the number of new leasing customers registered. This suggests that despite an overall trend of rental declines, the market continues to demonstrate active transaction activity and the ability to attract new tenants.

Moreover, the transaction volume in Dubai's real estate market has also seen significant growth. According to the Dubai Land Department, the transaction volume in the third quarter of 2023 was 31,216, a 22% increase from the same period last year. This is reflected in the total transaction value, which reached 97.55 billion dirhams, a significant 40% increase from 69.5 billion dirhams in the third quarter of 2022. These data points indicate a continued increase in investor confidence and interest in Dubai's real estate market.