Dubai has witnessed a jump of 26.6 per cent in rents from last year’s figures, with average annual rates now reaching nearly Dh90,000 for flats and over Dh260,000 for villas, according to an industry report released.
“Rental rate growth in Dubai has reached record highs… with apartment and villa rents increasing by 26.7 per cent and 25.5 per cent, respectively, (in the 12 months to September 2022),” said Taimur Khan, head of research for Mena at CBRE in Dubai.
In September, the average yearly rents for apartments and villas hit Dh89,986 and Dh268,758, respectively, based on the CBRE’s latest Dubai Residential Market Snapshot.
The most expensive places to rent in were Palm Jumeirah (Dh231,397) for apartments and Al Barari (Dh946,270) for villas, the report revealed.
The CBRE calculated the rates based on average apartment and villa sizes, across all unit mixes.
Here’s a list of the most affordable places to rent in (figures indicate average yearly rates for apartments):
- International City: Dh30,703
- Dubailand Residential Complex: Dh36,819
- IMPZ: Dh39,786
- Dubai Sports City: Dh42,824
- Arjan: Dh44,880
- Dubai Silicon Oasis: Dh48,518
- Discovery Gardens: Dh48,569
- Jumeirah Village Circle: Dh55,852
Here are some of the most expensive residential areas (figures indicate average yearly rents for apartments):
- Palm Jumeirah: Dh231,397
- Downtown Dubai: Dh189,727
- Jumeirah: Dh162,951
- The Old Town: Dh160,195
- Dubai Marina: Dh155,173
- JBR: Dh144,934
- DIFC: Dh133,066
- The Views: Dh132,015
- Greens and Views: Dh115,478
- Business Bay: Dh112,613
For villas here are some of the most affordable options (figures indicate average yearly rents):
- Deira: Dh112,737
- Jumeirah Village Circle: Dh141,091
- Reem: Dh141,611
- The Springs: Dh166,724
- Mudon: Dh174,508
- The Springs and The Meadows: Dh177,728
- Damac Hills (Akoya): Dh185,711
- Al Furjan: Dh187, 974
Here are the most expensive areas for villa rentals:
- Al Barari: Dh946,270
- Palm Jumeirah: Dh925,403
- Emirates Hills: Dh879,077
- Jumeirah Islands: Dh585,143
- Jumeirah: Dh500,635
- Green Community (DIP): Dh389,777
- Jumeirah Golf Estates: Dh367,413
- The Meadows: Dh328,143
Khan pointed out that the September rents in 22.6 per cent of the emirate’s apartment communities and in 96 per cent of villa neughbourhoods are higher than figures in the same period five years earlier.
“In the apartment and villa communities that we track, rents in 6.5 per cent and 28.0 per cent of these respective communities now sit above their last peak.”
This spike, he said, may start to impact affordability in the city “very significantly”.
“This in turn may impact its competitiveness and lead a negative spill over into other sectors, particularly amidst a high cost of living and softer global economic backdrop,” Khan said.