Tenants Are Facing Rent Increases Of Up To 20% When Renewing Contracts

Tenant Rent Increase

N.A., a resident of Dubai, has just received notice of a Dh14000 yearly rent increase. The foreigner said that her annual rent jumped from Dh70000 to Dh84000. While she has been residing in the same three-bedroom flat in the Zaabeel neighborhood for the past ten years. That is a 20% increase in rent from the previous year and is more than Dh1100 a month.

The notice from N.A. is consistent with the general increase in Dubai. Where rents last year reached a record high of around 27%. According to the real estate marketplace Property Finder, the average rental rates for apartments grew by about 21% in comparison to 2021. While those for villas jumped by 37%.

Where Rental Prices Have Risen

According to Sarah Hewerdine, head of marketing at agency-owned real estate website Houza, “a 20% rise is projected owing to the price increases we have witnessed here” for residents of neighborhoods like Dubai Hills. “Rent hikes are averaging 10-15% at The Views and The Greens, where occupancy is one of the highest in Dubai,” she continued.

According to recent statistics from Property Finder, Jumeirah Lake Towers apartments had an average rental price increase of 16%. While flats in Dubai Marina saw an average rental price increase of 31%. However, the average rental price for homes in Jumeirah Village Circle increased by 17%. While it increased by 30% in Palm Jumeirah.

High demand in Jumeirah, Dubai Hills Estate, Arabian Ranches, and Mohammed bin Rashid City supports this increase in rent. People were more likely to rent homes that were tucked away in exclusive neighborhoods and offered a variety of facilities in addition to access to other sections of the city.

Locations With The Lowest Rent

Hewerdine claims that while searching for a two-bedroom apartment in Dubai on houza.com, the most cost-effective choices include Al Qusais. Which costs around Dh30000; Ras Al Khor, costs around Dh40000, International City, costs Dh50000 and Dubai South, costs Dh55000.

In the apartment market, you may undoubtedly find less expensive choices in important areas like JLT. But be aware that they will be housed in older structures. When it comes to a 4-bed villa, one of the most affordable areas to rent in is Dubai South. At Dh110000. Mirdif villas are listed for Dh130,000.

Money Worth

Hewerdine claimed that neighbourhoods like JVC and JVT offered renters good value for their money. A 2-bedroom flat is now available for roughly 60,000 dirhams. With excellent connection and transportation choices, The Gardens and Discovery Gardens provide some truly appealing options for renters. For Dh80,000, you may buy a two-bedroom apartment in a premier building in the Gardens.

The places with the best rental unit deals, according to Property Finder. Include Dubai Marina, Mohammed Bin Rashid City, Jumeirah Village Triangle, Al Khail Heights, and Dubai Harbour.

Why Are Rents Rising?

Among the main causes of the rise in demand are new regulations on residence and visas. A new five-year Green residence program and a greatly expanded Golden Visa program are two of the many changes to residency laws that took effect last year.

An increasing demand for luxury real estate, greater foreign investment, economic diversification, and important events “attracting tremendous quantities of global talent and interest in living in the UAE”. That were among the other factors identified by Property Finder as contributing to the record surge. The pick-up in demand across new residential areas is also a result of the variance in rentals. Which is a favourable development for the UAE’s expanding real estate market.

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