The Fastest Rate Of Cost Growth In Eight Years
The majority of Dubai’s neighborhoods are seeing an acceleration in residential rent prices. The places with the largest rises include Discovery Gardens, Living Legends, Downtown, Jumeirah, and Dubai International Financial Centre (DIFC).
According to real estate analysts and business leaders, the population growth following Expo 2020 and the implementation of new reforms like the Golden Visa. Which drew many investors and high net worth individuals to the emirates, are the main causes of the rents rising at the fastest rate in the last eight years.
Industry insiders claim that due to its business-friendly rules, new incentives for investors, and improved quality of life, international investors are increasingly choosing Dubai as their primary residence in the post-pandemic period. According to the Dubai Statistics Centre, Dubai’s population just surpassed the 3.5 million thresholds and was 3,517,303 on July 18.
The average rent grew by 21.7% in the 12 months leading up to June 2022. With average rates for apartments and villas growing by 21.2% and 24.7%, respectively, according to the most recent statistics from CBRE. The average annual rent for an apartment was Dh85,204 and for a villa was Dh255,437 as of June 2022.
The highest average yearly rentals for apartments and villas were discovered in Palm Jumeirah and Al Barari, respectively. Where asking rates averaged Dh880,225 and Dh218,413 per year, respectively.
Pace of Price with Experts
The pace of price rise has slowed to 10.1% in the year to June 2022, according to Taimur Khan, head of research for Mena at CBRE in Dubai. However, the rate of rental growth is accelerating, with rentals rising by 21.6% over that time. According to Khan, “average rents are rising at the quickest rate since mid-2014.”
According to Imran Farooq, CEO of Samana Developers, Dubai real estate has been prospering since Expo 2020. In addition, many other industries and companies have prospered because of the government’s excellent management of the event.
“The UAE handled the epidemic in a way that was unheard of, which prompted the super-rich to relocate to Dubai. Additionally, the success of the UAE Golden Visa has inspired hundreds of investors to settle in Dubai.
The top three rental neighborhoods were Dubai Marina, Downtown Dubai, and Dubai Hills Estate. While the top three renter nationalities were British, Russian, and Indian, according to Allsopp & Allsopp statistics.
As rental activity grows around the city. We experienced a 25% increase in rental contracts from Q1 to Q2, which was another outstanding month for rentals. Additionally, the number of property management contracts increased by 13% between Q1 2022 and Q2 2022. With average rental rates rising throughout Dubai. This may be a sign that more investors are entering the market to profit from the high return on investment, according to Lewis Allsopp, CEO of Allsopp & Allsopp.
Lewis remarked that it is wonderful to see new regions get into the top 3 for rental transaction totals. Residents of the city are growing more and more enamored with Dubai Creek Harbour. With its closeness to the areas and convenient transportation links, it is an excellent choice for individuals who work in Downtown Dubai, Business Bay, and DIFC, he continued.