Richard Waind, managing director of the Betterhomes Group, said tenants in Dubai are increasingly looking to buy property because they fear receiving eviction notices from landlords due to rising rents.

According to Betterhomes' Q1 2023 report, the supply of new residential units remains tight in both the sales and rental markets, meaning little relief for tenants in terms of rents and higher prices for buyers.

"Rising rents and the fear of receiving an eviction notice are increasingly cited by residents as the main reasons for entering the property ladder," Waind wrote in the foreword to the report.

Real estate in the UAE began an unprecedented run following the pandemic and has continued unabated this year as well.

According to official figures released this month, Dubai's real estate transactions jumped 80 per cent to Dh157 billion in the first quarter of 2023, compared to Dh87 billion in the same period last year. The number of transactions also increased by 49 per cent from 26,066 to 38,715 in the comparative period, while the value of sales rose by 62 per cent to Dh89 billion.

The brokerage said occupancy rates in freehold areas remained stable, while occupancy rates in leasehold areas reached a record high of 97 per cent.

"Rents are a direct reflection of supply and demand and while increases have slowed from last year's high of 35 per cent, prices are still growing at a rate of 16 to 20 per cent per annum," it said.

It said Al Khail Heights saw the biggest increase in flat rents, jumping 14 per cent, while Jumeirah Golf Estate, Al Habtoor City and Dubai Creek Harbour also saw double-digit growth.

Betterhom expects 35,000 new homes to be delivered this year.

It said around 5,000 new homes were completed in the first quarter of 2023, which is significantly below what current market conditions would require.

"We don't expect to see enough of an increase in readily available supply to materially impact prices until the end of 2024 or into 2025," Waind said.

He said the strong performance of the local property market in the first quarter had put paid to any concerns about a slowdown in the market.

"Despite the continued rise in interest rates and the banking sector rocking in March, the market has remained incredibly resilient, bucking global trends and attracting a growing global audience," Waind said.