Residential rents in Dubai have been rising rapidly, with areas such as Discovery Gardens, Living Legends, Downtown Dubai, Jumeirah, and the Dubai International Financial Centre (DIFC) seeing the largest increases. This marks the fastest growth in rental prices in eight years, driven by a surge in population after Expo 2020 and reforms like the Golden Visa, which have attracted high-net-worth individuals and investors to the emirate.
Industry experts note that Dubai’s appeal as a primary residence has grown in the post-pandemic period, thanks to business-friendly policies, incentives for investors, and an enhanced quality of life. Dubai’s population surpassed 3.5 million as of July 2022, according to the Dubai Statistics Centre.
Recent data from CBRE reveals that average rents rose by 21.7% in the year leading up to June 2022, with apartment rents climbing by 21.2% and villa rents by 24.7%. Average annual rents stood at AED 85,204 for apartments and AED 255,437 for villas. Palm Jumeirah and Al Barari recorded the highest average rents at AED 218,413 for apartments and AED 880,225 for villas, respectively.
Taimur Khan, Head of Research for MENA at CBRE, noted that while property price growth has slowed to 10.1%, rental prices are accelerating at their fastest rate since mid-2014. Imran Farooq, CEO of Samana Developers, emphasized that Dubai’s handling of the pandemic has been pivotal in attracting affluent residents, while the success of the Golden Visa program has further bolstered the real estate market.
Allsopp & Allsopp data identified Dubai Marina, Downtown Dubai, and Dubai Hills Estate as the top areas for rentals, with British, Russian, and Indian nationals being the leading tenant groups. Rental contracts increased by 25% in Q2 2022 compared to Q1, with property management contracts also up by 13%, indicating heightened investor interest amid rising rental returns.
For short-term rentals, Dubai Creek Harbour, Dubai Marina, and Jumeirah Village Circle emerged as the most popular areas in June 2022. Lewis Allsopp, CEO of Allsopp & Allsopp, highlighted Dubai Creek Harbour’s growing appeal due to its proximity to key business districts like Downtown Dubai, Business Bay, and DIFC, as well as its excellent transport links. This shift reflects a growing trend of new residential areas gaining traction among city residents.
