Since The Covid-19 Pandemic, Rent Have Risen In The City. With Apartments’ Increased Prices Quickly Approaching The Same Rate As Villas’.
The Real Estate Regulatory Authority (Rera) rental index is becoming a go-to resource for tenants. As landlords issue more eviction notices and raise rents. After the Covid-19 pandemic, Dubai‘s rents began to rise. Along with apartment rent increases presently approaching the rate of villa rent increases. Due to the lack of villas and townhouses in the emirate because of the pandemic, rents for them were rising more quickly than for apartments as tenants preferred bigger spaces.
According to Prathyusha Gurrapu landlords who have been in a depressed market for a while and are trying to take advantage of favorable market conditions are pushing to raise rents during renewals. However, many tenants are turning to the Rera rental calculator to protect themselves from such increases. We frequently see landlords serve 12-month eviction notices or refurbishment notices to tenants. In an effort to clear out the space and [put it] back on the market, she continues.
Gurrapu drew attention to the fact that some landlords use the rental valuation certificate to raise rents during renewals. However, until Rera formally declares that the Rera rental index supersedes the rental valuation certificate, the Rera rental index will continue to be applicable for rental renewals. She continued, “The rental valuation certificate pertains to a vacant property, not to a rent renewal.
Strong Rental Growth Cannot Continue
The rental market in Dubai is experiencing steeper increases, according to Core’s third-quarter report. As villa and apartment rents have increased by 28% and 26%, respectively, across the city.
Downtown (37%), The Greens and The Views, and Apartments in Palm Jumeirah (up 38%) are next in line (37%). The outer districts, including Discovery Gardens 27%, Dubailand 25%, and Dubai Sports City (21%), have also gained steam. Moreover, experienced sharp increases in rent since Q3 2021.
The villa market once again saw Emirates Hills (42%) and Palm Jumeirah (41%) experience the highest rent increases. Jumeirah Village Circle 28%, The Springs, and the Meadows 20% followed that.
Such a sharp rise in rents is not sustainable, as the majority of districts have experienced increases of over 25%. Tenants are becoming increasingly concerned about this and it has a significant impact on affordability, according to Gurrapu.