The Latest Rental Trends in the UAE Property Market
Dubai, the commercial and tourism centre of the Middle East, recorded 55,651 sales transactions worth Dh135.4bn in the first 11 months of this year.
Rents were on the rise in most areas of the city
- Apartment rental rates rose 3% quarter on quarter while villas rose 6%.
- Annual changes were significant in the villa segment, with a 19 per cent rise.
- Apartment rents were up 3% annually.
Villas: Up & Up
Villas were the predominant focus of demand and the limited number of new handovers translated into higher rental and occupancy rates.
Why villas translated into demand?
1. The shift to remote working has led to tenants seeking more space, which has translated into demand for the villa communities in the outer suburbs which resulted in rises of more than 40% annually in Dubai Hills and more than 30% in Arabian Ranches.
2. The average villa landlord asked for 14.1% more in rent in the third quarter this year while the average apartment rent rose by only 2.6%.
3. Average prices were significantly more affordable than during the sharp increase recorded in 2013 to 2014, after Dubai won its Expo 2020 bid.
The Supply of New Units
- New residential supply slowed in the third quarter compared to the second quarter.
- Received only 100 new units across the three-month period. The number of completed apartments was about 3,600.
- 9,300 apartments and villas are expected for handover by year end.
Sales & Transactions
- 80.4% sale transactions, annually in November as the emirate registered 7,000 sales deals worth Dh17.96 billion last month.
- 45% transactions higher when compared with November 2019, before the start of the pandemic.
- Residential property prices in Dubai jumped 21% in the first 10 months of the year to Dh1,235 per square foot.
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