Dh30,000 to Dh1 million per year: Dubai villa, apartment rents increase by 26.9%

Average property prices rose by 9.5 per cent, with average apartment rates climbing 9 per cent and those for villas by 12.8 per cent

Read more...
by

A Staff Reporter

Published: Tue 10 Jan 2023, 11:32 AM

Last updated: Wed 11 Jan 2023, 11:29 AM

Average rents of apartments and villas continue to rise in Dubai, with a report pegging the average annual apartment rents at Dh95,168, and those for villas at Dh282,150 as of December 2022.

In 2022, average rents increased by 26.9 per cent, according to the CBRE Dubai Residential Market Snapshot. “Over this period, average apartment and villa rents increased by 27.1 per cent and 24.9 per cent, respectively.”

Palm Jumeirah recorded the highest average annual apartment and villa rents, reaching an average of Dh248,452 and Dh1,016,956 per annum, respectively.

Advertising
Advertising

The most affordable apartment rents in Dubai can be found in International City, with an average of Dh29,915 per annum. In Deira, average villa rents are pegged at Dh114,175.

Here are the average apartment rents in Dubai, according to CBRE research:

Average villa rents are below, as per the market snapshot:

(Rents are based on average apartment sizes in each community across all unit mixes)

ALSO READ:

Transactions reach record highs in 2022

The total volume of transactions in Dubai reached 8,662 in December 2022, a growth of 63 per cent from the previous year. This has been supported by a 92.5-per cent increase in off-plan sales and a 35.4-per cent jump in secondary ones.

Over the full year, a record total of 90,881 residential transactions has been registered in 2022, exceeding the historic record high of 81,182 from 2009.

Average property prices rose by 9.5 per cent in the year to December 2022, with average apartment rates increasing by 9 per cent and those for villas by 12.8 per cent.

As of December 2022, Dubai’s average apartment prices reached Dh1,168 per square foot, and villas reached Dh1,385.

Taimur Khan, head of research for Mena at CBRE in Dubai, said: “Dubai’s residential market saw a number of records being broken over the course of 2022. Residential transaction volumes reached 90,881 for the year, a new record, beating the 2009 high by almost 10,000 transactions. Residential rental growth also reached historic levels.

“Due to the lack of available villa stock for rent and growing demand levels for such stock, villa rents are now 45.3 per cent higher than in 2019.”

In the year ahead, CBRE expects both the average rates of price and rental growth to remain positive. “However, we expect the rates to be moderate and in certain more nascent communities with strong supply pipelines, to decline.”

ALSO READ:

A Staff Reporter

Published: Tue 10 Jan 2023, 11:32 AM

Last updated: Wed 11 Jan 2023, 11:29 AM

Recommended for you