According to Zoom Property Insights, the Dubai rental market is still on the rise as average rent increases by 27% this year and demand increases significantly in line with the emirate’s robust economic activity.
The average cost of renting an apartment has risen to Dh91,795, while the cost of renting a villa has increased to Dh274,740. According to the survey, this shows an increase of 27.5% and 25.7% in the corresponding sectors.
Renters are hesitant to relocate, though, as a result of the rising costs. Because fewer new contracts are being signed, the number of renewals is higher.
According to Zoom Property CEO Ata Shobeiry, the rental property market will end the year strongly.
The latest data show that the Dubai rental market is booming, he claimed. The prime areas, such as Palm Jumeirah, Downtown Dubai, Dubai Marina, and JBR, are performing exceptionally well, which is a great sign for the market. I believe 2022 will end on a very strong note for the rental market as FIFA World Cup 2022 Qatar is giving the short-term rental market a remarkable boost.”
Forecast for 2023
Dubai’s rental market appears to have a promising 2023. According to Zoom Property Insights, Dubai’s rent for apartments and villas will remain high over the course of the following year, paving the way for an even more successful 2023.
Due to its stability and higher returns, Dubai’s real estate market is drawing HNWIs and foreign investors, which will have an effect on the rental market as well. Despite the increase in rents, people will continue to relocate to Dubai, enjoy its upscale lifestyle, and explore professional & entrepreneurial opportunities, which, ultimately, will benefit the overall economy”, Shobeiry concluded.