Dubai has recorded its highest-ever rental growth, with average rents rising by 28.5% in the 12 months to January 2023, according to CBRE. Average apartment rents increased by 28.8% to Dh98,307, while villa rents rose 26.1% to Dh290,242.
The Palm Jumeirah had the highest rental rates for both types of property, with average annual rents of Dh258,529 and Dh1,032,763, respectively. However, CBRE’s report also found that some landlords in core communities are reducing their listed rental prices
According to the market snapshot, residents can get an apartment for less than Dh30,000 a year in International City. The next most affordable area for rents is Dubailand Residence Complex with an average rent of Dh41,700. Based on average apartment sizes in each community, across all unit mixes, here are the rents in key areas, according to the report:
Based on average townhouse and villa rents in each community, across all unit mixes, here are the rents in key areas:
Strong residential market
Meanwhile, the company said activity in Dubai’s residential market started the year on a “strong footing” as total transaction volumes reached 9,229 in January 2023, marking a growth of 69.2 per cent, compared to the year prior. Over this period, off-plan sales grew by 88.1 per cent and secondary market sales by 51.4 per cent.
In the year through January 2023, average residential prices grew by 10.6 per cent. Average apartment prices increased by 10.3 per cent, while those for villas were up 12.9 per cent. Average apartment prices in Dubai, as of January 2023, stood at Dh1,196 per square foot, while those for villas hit Dh1,411.