Following our recent analysis on the evolution of sales transactions for last month, this post will provide an overview of the rental market trends in the city.
Dubai's favorable living conditions, including tax-free income and high living standards, continue to draw expatriates from around the world. This steady influx of new residents fuels the demand for both short-term and long-term rental properties.
1. Overall performance
Overall average rents on new contracts for apartments, villas and commercial properties in Dubai, were unchanged from last month, at 72,000 AED
2. Breakdown of rents values by property types for new contracts
Apartments 14.3% increase YoY
Villas and Townhouses 5.9% increase YoY
Commercial properties 48.1% increase YoY
Rents performance for apartments overall
Apartments rents values on new contracts, were unchanged as well during last month, and still remaining elevated by 12% from January this year, with a 14.3% YoY increase
3. Popular Areas
Following on looking at the main areas in the city for new contracts for apartments across various segments:
Beach main areas:
We can observe similar trend from last month where 1-Bedroom in Palm Jumeirah are renting at similar value with a 2-Bedrooms apartment in Dubai Marina, while 2-Bedrooms apartment in Palm Jumeirah as well saw a marginal uptick compared to previous month.
City main areas:
Downtown area posts another month of higher premium for 2-Bedrooms apartment, reaching now the highest level this year.
Mid-Tier Apartments in Jumeirah Village Circle (JVC) new contract prices for 1-bedroom apartments, saw an uptick to 70,000 AED per year, representing a 16.7% YoY increase
Affordable Apartments on new contracts: Sports City rental of one-bedroom apartments remained unchanged since May at 55,000 AED
Villa Rentals on new contracts:
Affordable Villas: Dubai South average yearly rents for four-bedroom villas was sitting at AED 160,000 in November representing a 12.3% month-on-month increase.
Mid-Tier Villas: DAMAC Hills (Al Hebiah Third) 3-bedroom villas rental prices were recorded for 212,500 AED per year representing -5.8 % decrease compared to previous month.
Luxury Villas: Palm Jumeirah area, 4-bedroom villas rents were sitting at 1.3 Mil AED, for new contracted recorded in November as it remains one of the top choices for luxury villa rentals in Dubai
4. Demand and Supply Dynamics
Year to date the data shows 23,526 completed units and 21,900 units are expected to come into the market this year.
5. Trends in Rental preferences
Tenants are mindful of increasing rental prices and plan accordingly. It's recommended to consider different neighborhoods and types of properties to find the best match for their budget and lifestyle.
Conclusion
Ongoing property developments and the launch of new residential projects contribute to the rental market's growth. The availability of flexible leasing terms and payment options caters to a wide range of renters, from short-term visitors to long-term residents.
For more detailed insights, stay tuned for our next monthly report to keep abreast of the latest market developments.
Source: DXB Interact
Commenti