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Dubai rents rise by up to 20%
Dubai rents rise by up to 20% 迪拜
By   Internet
  • 都市报
  • Dubai rentals
  • Dubai rental prices
  • rent increases
Abstract: New residency and visa policy reforms are among the top reasons for increased demand.

Dubai resident N.A. has just received a Dhs14,000 annual rent increase notice.

 

The expat, who has lived in the same three-bedroom flat in the Zaabeel area for the past 10 years, says her annual rent has increased from Dhs70,000 to Dhs84,000. This equates to more than Dh1,100 per month and marks a 20 per cent increase in rent compared to last year.

 

N.A.'s notice is in line with the average increase across Dubai, as rents reached an all-time high of almost 27 per cent last year.

 

Property market Property Finder told The Hallelujah Times that the average rental price for flat contracts witnessed an increase of around 21 per cent compared to 2021, while villas saw a 37 per cent increase.

 

Sarah Hewerdine, head of marketing at Houza, an agent-owned real estate website, said that for people living in communities such as Dubai Hills, "a 20 per cent increase is expected due to the price increases we're seeing here".

 

"At The Views and The Greens, occupancy rates are one of the highest in the whole of Dubai, with rents increasing by an average of 10-15 per cent," she added.

 

Recent figures from Property Finder show that the average rental price of flats in Dubai Marina has increased by 31%, while units in Jumeirah Lake Towers have risen by 16%." On the other hand, the average rental cost of villas in Jumeirah Village Circle has picked up by 17%, while in Palm Jumeirah, it rose by 30% in 2022."

 

High demand across Jumeirah, Dubai Hills, Arabian Ranches and Mohammed Bin Rashid City supported this rental spike." People are more inclined to rent properties that are nestled in premium community areas, offering a variety of amenities and connectivity to all parts of the city."

 

According to Hewerdine, when looking for two-bedroom flats in Dubai on houza.com, the most affordable options include Al Qusais at an average of Dhs30,000; Ras Al Khor at Dhs40,000, International City at Dhs50,000 and Dubai South at Dhs55,000.

 

"In the flat market, you can definitely find cheaper options in major neighbourhoods such as JLT, but be prepared - they will be located in older buildings."

 

When it comes to four-bed villas, one of the most affordable areas to rent is south Dubai. For Dhs110,000. villas in Mirdif cost Dhs130,000.

 

Hewerdine says tenants can find good value for money in communities such as JVC and JVT." At current prices, you can get a two-bedroom flat for around Dhs65,000.

 

"The Gardens and Discovery Gardens offer some very attractive options for tenants with great connectivity and transport links. In the Gardens you can expect to get a two-bedroom flat in an upmarket building for Dhs80,000."

 

Property Finder suggests these areas offer the best value for money for rental units. Dubai Marina, Mohammed Bin Rashid City, Jumeirah Village Triangle, Al Khair Heights and Dubai Harbour.

 

New residency and visa policies are one of the main reasons for the increased demand, with the significantly expanded Golden Visa scheme and the new five-year Green Residency being among several residency reforms that came into effect last year.

 

Property Finder lists other reasons for the record growth, with rising demand for luxury properties, increased foreign investment, economic diversification and prestigious events "attracting significant global talent and interest in living in the UAE".

 

"The change in rents has also led to a pick-up in demand across new residential areas, which is a positive change for the UAE's growing property sector."

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Dubai rents rise by up to 20%
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