Dubai among Top 3 Cities to Record Highest Level of Rental Growth in 2021
Dubai along with Miami and Moscow recorded the highest levels of rental growth over the first half of 2021 as the emirate's property market reached a turning point after six years of negative rental growth, underscoring the strong rebound of the real estate sector, according to Savills, a leading global real estate advisor. In its latest report evaluating the rental values and yields reported for prime residential properties in 30 cities across the globe, Savills said Dubai's realty market appeared to be reaching a turning point after six years of negative rental growth resulting from oversupply in the market. “Prime rental prices in Dubai increased by 5 per cent in the six months to June, driven by a 20 per cent increase in rents for villas as residents prioritise space and shift away from apartment living in the wake of the pandemic,” Savills World Cities Index report said. The report noted that Dubai rental prices have been on a steady decline over the past years due to the vast array of developments causing a significant oversupply in the market. Last year witnessed the worst decline with a 12 per cent drop in rents over the city due to travel restrictions and resulting economic decline caused by the pandemic. Based on the findings from the World Cities Prime Index Report by Savills, the Dubai market appears to finally be reaching a turning point. Swapnil Pillai, associate director Research at Savills Middle East, said rental markets are likely to remain stable for the rest of 2021. “Travel restrictions remain in place between key source markets, causing rental prices to recover more slowly than capital values. However, in the long run, prices are likely to gradually appreciate as economic activity gathers momentum and more job opportunities are created. The further easing up of travel restrictions will be a welcome catalyst for growth.”
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