Revealed: Dubai’s apartment, villa rents rise and fall – News

Industry executives attribute rising costs to influx of foreign workers into UAE

Residential rents rose in almost all areas of Dubai except Arjan, Bur Dubai and Liwan, with average rents rising by more than 13% in March, the highest growth rate in seven years.

Industry executives have attributed the rise in rents to the influx of foreign workers into Dubai, as businesses are relocating here following the successful response to the Covid-19 pandemic. This was evident in figures released by the Dubai Statistics Center last week, which showed the UAE’s population at more than 3.5 million.

According to CBRE’s first quarter report, the average rent for apartments and villas increased by 11.7% and 22.5% to reach Dh80,000 and Dh238,441 per annum by March 2022, respectively.

The most expensive apartments and villas are located in Palm Jumeirah with an average asking rent of Dh197,482 and Al Barari with an average asking rent of Dh801,940.

source: CB Richard Ellis, KT Research

The report by the real estate consultancy shows that apartment rents in Business Bay have seen the greatest growth of 4.9 per cent, followed by International City at 4.2 per cent, Dubai Marina and Damac Hills (Akoya) at 4.1 per cent and Old Town (Bastakiya) at 3.9 per cent. The five areas with the smallest rent increases included Dubailand Residence Complex, Green Community (DIP), The Views, Dubai Silicon Oasis and The Greens.

In the apartment segment, rents fell in Arjan, Bur Dubai and Liwan, while in the villa segment, rents fell in Jumeirah Park, Deira, Reem and Al Furjan.

Rents in the mid-market and affordable markets will continue to rise by about 20 per cent, said Samir Munshi, chairman of Silver Heights Holding. In the luxury segment, however, there will be consolidation as rents have peaked over the past 18 months.

“We now have to consider a few facts: Firstly, the end of Expo 2020 means that a lot of Expo-related demand has come to an end. The Covid-19 situation has improved globally. As a result, travel restrictions have eased around the world. Therefore , while a lot of people will come into the country to take up new jobs or start a business, a lot of people will also go out. That’s why, the luxury real estate market will consolidate, but the demand in the mid-market will accelerate,” said Wang, who has participated in real estate brokerage, investment and Munshi, a real estate industry veteran who developed the development, said.

Imran Farooq, chief executive of Samana Developers, said rental demand for residential units has been very strong and will continue to remain high throughout the year, as free zones and licensing agencies have seen an unusual increase in issuing new permits, leading to an influx of foreign workers Enter the UAE.

Farooq added: “The fact that the Emirate of Dubai has issued such a high volume of new trade licenses is clear evidence that large businesses are relocating to Dubai post-Covid and this will continue to bring more new residents to Dubai.”

Demand for office rentals has also been fairly strong over the past three months due to an influx of new business, he said. “Grade A office rents have increased by 30-40%, which means that businesses moving to Dubai have created more demand. Initially, the demand growth started with villas and townhouses, but now there is a very strong trend across all sectors, ’ added Farooq.