Rents rise up to 20% in Dubai

N.A., a resident of Dubai, has received a notice of yearly rent increase of Dh14,000. The foreigner who has lived in the same three-bedroom flat in the Zaabeel area for the past decade reported a rent rise from Dh70,000 to Dh84,000. At almost Dh1,100, this is a 20 percent increase over the same time last year’s rent was being paid.

As rentals in Dubai reached a record high of over 27 percent last year, N.A.’s announcement is in line with the average rise throughout the city.

Property Finder, an online real estate marketplace, informed the Khaleej Times that average rental costs for apartment contracts rose by roughly 21 percent from 2020 to 2021 and that villa rental prices rose by 37 percent from 2020 to 2021.

Places Where Rents Have Gone Up

“A 20 per cent rise is projected owing to the price surge we have witnessed here,” Sarah Hewerdine, head of marketing at agency-owned real estate website Houza, said.

She also said that rent hikes in Dubai are often between 10 and 15 percent, with the greatest rises occurring in the communities of The Views and The Greens.

Apartments in Dubai Marina had a 31% increase in average rental price, while those in Jumeirah Lake Towers saw a 16% increase, according to statistics from Property Finder. The average rental price of a property in Palm Jumeirah increased by 30% in 2022, while in Jumeirah Village Circle it increased by 17%.

Rents have risen due to increased demand in popular areas including Jumeirah, Dubai Hills Estate, Arabian Ranches, and Mohammed bin Rashid City. People choose to rent homes that are part of upscale neighbourhoods with easy access to public transportation and a variety of local attractions.

Locations with the Lowest Monthly Rents

According to Hewerdine, a 2-bedroom flat in Dubai can be found on houza.com for an average of Dh30,000 in Al Qusais, Dh40,000 in Ras Al Khor, Dh50,000 in International City, and D$55,000 in Dubai South.

As an example, “in the apartment market, you can undoubtedly find cheaper possibilities in major neighbourhoods like JLT,” but with a caveat: “be prepared — they will be placed within older structures.”

One of the most cost-effective regions in which to rent a 4-bedroom villa is Dubai South. At Dh110,000. The asking price for a Mirdif villa is Dh130,000.

Cost-benefit analysis

Hewerdine claimed renters may get a decent deal in places like JVC and JVT. “A two-bedroom flat in the area may be had for roughly Dh65,000 at the moment.” Renters will find a lot to like about the alternatives available in The Gardens and Discovery Gardens, thanks to their convenient proximity to public transportation and other amenities. A two-bedroom flat in a good building in the Gardens is available for around Dh80,000.

Dubai Marina, Mohammed Bin Rashid City, the Jumeirah Village Triangle, Al Khail Heights, and Dubai Harbour were identified by Property Finder as offering the best price-to-rent ratios.

As to why rents have gone up,

Among the primary causes of the uptick in interest are recent changes in residence and visa laws. Some of the many changes made to residence policies in the last year include an enlarged Golden Visa programme and a new green residency that lasts for five years.

Furthermore, Property Finder cited the following factors that contributed to the unprecedented growth: “attracting large quantities of global talent and interest in living in the UAE” due to expanding demand for luxury real estate, greater foreign investment, economic diversification, and prominent events.

Fortunately for the expanding UAE real estate market, “the diversity in rentals has also led to the pickup in demand across new residential areas.”

Source:

https://www.khaleejtimes.com/business/property/dubai-rents-increase-by-up-to-20-where-to-find-affordable-homes