Dubai has seen a consistent rise in rents over the past 14 quarters, prompting more tenants to renew their contracts rather than seek new leases. Since the Real Estate Regulatory Authority (RERA) updated its Rental Index in March this year, rental prices have surged by up to 15%.
Rental rates, now 64% higher than in Q1 2020 before the COVID-19 pandemic, rose by 19% year-on-year in Q2 2024. This consistent upward trend has led to more tenants renewing their leases.
In the villa rental segment, affordable categories saw a 21% increase, mainstream districts experienced a 12% rise, and prime districts recorded a 1% increase. Apartment rents rose by 27% in the affordable category, 19% in the mainstream segment, and 14% in prime areas during Q2 2024
However, signs of moderation are emerging in villa rentals and secondary residential sales, with transaction volumes beginning to level off.
Jumeirah Village Circle villas saw the highest year-on-year increase at 40%, followed by Jumeirah Park (22%) and The Springs and The Meadows (14%). Among apartment districts, the most significant year-on-year rental increases were in affordable areas, with Discovery Gardens (32%), Dubai Sports City (28%), and Dubailand (24%) leading the way.
Source : khaleejtimes.com
