The fastest growth rate in the cost of renting apartments and villas in Dubai

Rental prices in the emirate of Dubai are growing at the fastest rate since October 2014. The average rental price for apartments and villas as of May 2022 was AED 83,485 (USD 22,800) for apartments, and AED 249,677 (USD 68,000) for villas, per year.

According to the latest CBRE report, the overall average rental price in the emirate in Dubai for the 12 months to May 2022 increased by 19.1%, while the average rental price for apartments and villas rose by 18.3% and 24.3% respectively.

The highest average annual rental prices for apartments and villas were registered in Palm Jumeirah, where rents on average were AED 213,761 (USD 58,200), as well as in Al Barari which costs AED 874,171 (USD 238,000).

Against the background of rising prices for renting apartments and villas in Dubai, investments in real estate in the emirate are becoming increasingly profitable. The total volume of transactions in the Dubai residential real estate market continues to grow and reached 6,652 in May 2022, which is 33% more compared to the same time last year. During this period, sales of off-plan property in Dubai increased by 55.4%, and sales in the secondary market – by 18%.

Average real estate prices in the emirate also increased by 10.9% in the year to May 2022. During this period, the average price for apartments in Dubai increased by 9.6%, and for villas – by 19.8%. As of May 2022, the average price for apartments in the emirate was AED 1,102 (USD 300) per sq.ft, while the average price for villas were AED 1,307 (USD 356) per sq.ft.

Recent amendments in the rules for obtaining a UAE Golden Visa is another reason for the increased demand in real estate in the emirate of Dubai. The new rules offer flexibility in obtaining a Golden Visa and have lowered the minimum threshold for the value of the purchased property to AED 2,000,000 (USD 545,000).