Surge in rents due to rising demand

Inayat-ur-Rahman, Business Editor

Rents in Dubai are increasing rapidly, with average annual rent reaching Dhs99,737 after a 1.5 per increase on a month-on-month basis in February.

The Zoom Property Insights data reveals that the average annual rent has risen to Dhs 100,000 and Dhs 295,000 for apartments and villas, respectively.

Palm Jumeirah, the iconic neighbourhood in Dubai, houses the most expensive rental properties in Dubai with Dhs 260,000 as the average annual rent for apartments and Dhs 1 million as the average annual villa rent.

Ata Shobeiry, CEO of Zoom Property, believes the rising demand is the major reason behind the rent increase in Dubai.

He says, “Dubai continues to attract HNWIs and visitors from across the globe, which has resulted in an increase in demand for rental properties. This upward trend is expected to continue throughout the year.”

Jumeirah, Palm Jumeirah, and Downtown Dubai continue to dominate the popular areas for apartments to rent in Dubai, according to the Zoom Property Insights. The average rent on the per square feet basis in these areas has increased to Dhs2,390, Dhs 2,210, and 2,280, respectively.

Dubai Hills Estate and MBR City, each with Dhs 1,740, as average rent per square foot, along with Business Bay (Dhs 1,660 per square foot) and Jumeirah Beach Residence (Dhs1,520 per square foot) are other popular areas to rent apartments in Dubai.

For villas, Palm Jumeirah, Emirates Hills, and Jumeirah take the lead with Dhs 4,310, Dhs 2,450, and Dhs 2,325, respectively, as average rent per square foot.

District One (Dhs 2,100 per square foot), Dubai Hills Estate (Dhs 1,780 per square foot), and MBR City (AED 1,170) also remain highly popular among tenants for rental villas in Dubai.

“The rising rent in Dubai has resulted in a reduced number of new rental contracts. Many tenants now prefer renewing their existing leases instead of renting new properties because of the increased rent and global inflation. However, despite this, there are still many takers for rental properties in Dubai because of the city’s economic growth, upscale lifestyle, and professional opportunities,” Shobeiry concluded.

Zoom Property is an emerging property portal in the UAE with a primary focus on Dubai, Abu Dhabi and Sharjah markets. The portal also features international properties in KSA, the UK and other regions on the platform to facilitate buyers and renters. It is also popular among developers, real estate brokerages and property sellers.