Dubai rents hit historic highs: Existing tenants face up to 20% increase when renewing contracts.
11 February 2023, 12:00 AM
31 March 2023, 12:00 AM
Real estate in Dubai saw a bumper year in 2022 with record-breaking transactions and soaring property prices – and the trend is expected to continue in 2023, according to a new report, spelling good news for landlords but more rental woes for tenants.
According to Zoom Property Insights, the average rent of villas in Dubai crossed Dh268,000 while apartment rents hit Dh90,000 last year. It is expected that a similar trend will continue this year, the Insights data says.
Ata Shobeiry, CEO of Zoom Property, believes that the high influx of expatriates moving to Dubai is a major factor that is driving the rental market.
“The number of people shifting their base in Dubai to seek employment and entrepreneurship along with an upscale lifestyle is rising with every passing day. This has led to demand for rental properties and a subsequent rise in the average rent. Still, there are some areas where tenants can find affordable housing options,” he said.
Sarah Hewerdine, head of marketing at agency-owned real estate website Houza, said for those living in communities such as Dubai Hills, “a 20 per cent increase is expected due to the price growth we have seen here”.
“At The Views and The Greens, where occupancy is one of the highest across Dubai, rent increases are averaging 10-15 per cent,” she added.
Property Finder’s recent data suggests that the average rental price for apartments in Dubai Marina increased by 31 per cent, while Jumeirah Lake Towers units registered a 16 per cent rise. “On the other hand, the average rental cost for villas in Jumeirah Village Circle picked up by 17 per cent, while in Palm Jumeirah, it rose by 30 per cent in 2022.”
This spike in rent is supported by high demand across Jumeirah, Dubai Hills Estate, Arabian Ranches and Mohammed bin Rashid City. “People were more inclined to renting properties that were nestled within the realms of exclusive communities, offering a wide range of amenities, as well as connectivity to various parts of the city.”