Dubai Villa & Apartment Rents to Sustain an Upward Trend
Dubai rental market is likely to sustain an upward price trend in near term future as Expo 2020 has generated property demand especially in areas with close proximity of the mega event. The Dubai real estate sector has witnessed an upward trend in the rental market during the third quarter of this year with an estimated 14 per cent increase in affordable housing and up to 30 per cent surge in luxury housing in selected areas of the emirate. The fourth quarter is expected to follow suit with the commencement of Expo 2020 Dubai. Due to the ongoing Expo and a strong comeback by the Dubai property market post-pandemic setback, rental prices will see a significant increase in the last quarter. “While we expect residential rents in Dubai to continue improving over fourth quarter and in 2022, it is important to note that rental recovery is expected to be segmented. Villa districts and most of the prime apartment locations are expected to see a faster pace of recovery while most affordable and outer apartment districts with ample existing stock are expected to see slower stabilisation rates,” Edward Macura, partner at real estate consultancy Core. Furthermore, he said most rental rises are in the new-let market as landlords have been able to list and rent at higher rents, however, “we haven’t witnessed similar levels of rental escalations in lease renewals” due to the cap on rental increases governed by the Rera Rental Index.
Tags : INTERNATIONAL Luxury Housing rental Dubai property market Expo 2020 Dubai Rera Rental Index Villa & Apartment Emirate