Strong recovery in Dubai rental market
- 10 Jan 2022
Photo used for illustrative purpose.
Inayat-ur-Rahman, Business Editor
In the luxury category, the highest number of searches were recorded for Dubai Marina and Downtown Dubai. Jumeirah Beach Residence (JBR), Palm Jumeirah and Al Barsha showed steady performance throughout the year.
The Zoom Property Insights noted a steady rise in rents for apartments and healthy growth for villas last year as the UAE continued to recover from the pandemic. It recorded a nominal 3 per cent hike in apartment rental rates and a healthy 20 per cent-plus average hike for villas as tenants preferred big space to create room for remote working.
In some of the most popular areas of Dubai, the rent for villas has increased by up to 40 per cent due to high demand for destinations such as Dubai Hills Estate and Arabian Ranches.
According to Ata Shobeiry, CEO at Zoom Property, “the return of foreign investors and efficient handling of the pandemic are some of the major reasons that led to the strong recovery in the rental market. The onset of Expo 2020 Dubai that’s attracting visitors from across the globe has also played a major role in boosting the property market”.
For affordable apartments, JVC remained a most popular choice of tenants in Dubai last year as it offered an amazing lifestyle with state-of-the-art facilities. Being a renowned family-friendly community, it witnessed an increase in average rent and demand. During the third quarter, JVC reported an increase of 1.44 per cent, 1.29 per cent, and 4.76 per cent in the rental values of studios, 1-bedroom apartments and 2-bedroom apartments, respectively.
Al Nahda, Dubai Silicon Oasis, and Bur Dubai are other communities that tenants preferred to rent properties in the emirate. During the last quarter, the areas located close to the Expo 2020 site also picked up pace because of the six-month long global fair.
