Dubai Shows Record Increase in Rental Prices

A record increase in rental prices has been seen in Dubai, and the numbers continue to grow significantly. Last month, the average annual rental price for a villa in the emirate reached AED 268,758 (USD 73,000), which has grown by 26% in the year through September.

In terms of apartments, the average cost has increased by 27% and reached AED 89,986 (USD 24,500). Such numbers can be explained by several factors, including a growing number of foreigners moving to Dubai. Another explanation is the rise in luxury real estate prices, which has jumped by 89% in comparison to the previous year.

One of the most affordable areas to rent a villa in Dubai is Deira, where the average rental cost for this type of residential unit is AED 112,740 (USD 30,700) per year. However, even this area has seen an increase by 3.5%. A growth of 4.8% has been seen in the prestigious area of Palm Jumeirah, making the average rental price of a villa AED 501,000 (USD 136,400). Renting an apartment on this man-made island will cost you AED 231,400 (USD 63,000) on an average

In the neighbourhood of Al Barari a villa can be rented for AED 946,300 (USD 258,000). The average rental price in Emirates Hills and The Springs is AED 879,100 (USD 239,300) and AED 166,724 (USD 45,400) respectively. Some people have started moving towards the outskirts of Dubai and choosing property there. It’s possible that rental prices will start moderating by 2023.

The number of purchased homes in 2022 until September, has already reached the highest level since 2009. Moreover, in Q3 2022 a record in the number of sales transactions above AED 100М (USD 27.22М) has been seen in the emirate. Whilst in 2021 the number of these types of transactions was just 5, whereas this number has reached 16 between January 2022 to September 2022 alone.