According to Zoom Property Insights, Dubai's rental market continues to heat up as average rents witnessed a 27 per cent jump this year and demand has received a big boost with the emirate's strong economic activity.

The average rental price for flats has reached Dh91,795, while villas have jumped to Dh274,740. According to the survey, this represents an increase of 27.5% and 25.7% in these two areas respectively.

However, renters are reluctant to move to a new home due to the increase in prices. This is why the number of new contracts has fallen and, as a result, the renewal rate is higher.

Ata Shobeiry, CEO of Zoom Property, believes that the rental property market will end the year on a strong note.

The rental market in Dubai is cruising and the latest figures show just that," he said. Prime locations such as The Palm Jumeirah, Downtown Dubai, Dubai Marina and JBR are all performing very well, which bodes well for the market. I believe the rental market will end 2022 on a very strong note as the 2022 Qatar World Cup is giving the short-term rental market a significant boost."

Maintaining its reputation, The Palm Jumeirah remains the most in-demand area for rental properties in Dubai.

Referring to data from the third quarter of 2022, Zoom Property Insights noted that the average rent for flats in The Palm Jumeirah rose by 22%. Similarly, the villa segment of the neighbourhood showed a jump of around 32 per cent.

This is in addition to a significant increase of 24% in the average rental price of flats in Downtown Dubai. On the other hand, Dubai Hills recorded the highest increase of 33% in terms of villa rentals in Dubai.

In addition to the aforementioned areas, JBR, Dubai Marina, Al Barari, Emirates Hills and Jumeirah Bay are other areas that have witnessed an increase in demand for rental properties.

The outlook for the Dubai rental market in 2023 looks positive. According to Zoom Property Insights, rents for flats and villas in Dubai will continue to remain high next year, paving the way for an even stronger 2023.

"The Dubai property market is attracting high net worth individuals and foreign investors due to higher returns and stability, which will also impact the rental market. Despite rising rents, people will continue to relocate to Dubai to enjoy its upscale lifestyle and explore professional and entrepreneurial opportunities, which will ultimately benefit the overall economy", Shobeiry concluded.