28.5 per cent rise in average rents in Dubai; Emirates highest rental growth on record

Average rents in Dubai grew by 28.5 percent the 12 months to January 2023 — the Emirate’s highest rental growth on record. According to real estate services and investment company CBRE, average apartment rents grew by 28.8 percent to reach Dh98,307 during this period. Villa rents reached Dh290,242, registering a growth of 26.1 percent.

Palm Jumeirah has registered the highest rental rates for both apartments and villas, with average annual asking rents currently standing at Dh258,529 and Dh1,032,763, respectively, CBRE said in its Dubai Residential Market Snapshot for February 2023.

“While the annual rate of growth is at record highs, we are seeing that an increasing number of listings in core communities are starting to decrease their listed price, indicating that in parts the market is reaching its peak,” said Taimur Khan, head of Research – Mena at CBRE in Dubai.

According to the market snapshot, residents can get an apartment for less than Dh30,000 a year in International City. The next most affordable area for rent is the Dubailand Residence Complex, which has an average rent of Dh41,700. 

Meanwhile, the company said activity in Dubai’s residential market started the year on a “strong footing” as total transaction volumes reached 9,229 in January 2023, marking a growth of 69.2 percent, compared to the year prior. Over this period, off-plan sales grew by 88.1 percent and secondary market sales by 51.4 percent.

In the year through January 2023, average residential prices grew by 10.6 percent. Average apartment prices increased by 10.3 percent, while those for villas were up 12.9 percent. Average apartment prices in Dubai, as of January 2023, stood at Dh1,196 per square foot, while those for villas hit Dh1,411.