Dubai witnessed a 5% increase in rental prices in January-June 2021.
Along with Moscow and Miami, Dubai recorded the fastest pace of rental growth in the first half of 2021 as the emirate’s real estate market approached the pivot point after six years of negative rental prices, marking vigorous growth of the property market.
According to a report evaluating the rental prices and yields for luxury properties in 30 cities across the world unveiled by Savills, a leading global real estate advisor, Dubai’s property market prices are likely to reverse direction after six years of negative growth resulting from the supply glut.
“Prime rental prices in Dubai increased by 5 percent in the six months to June, driven by a 20 percent increase in rents for villas as residents prioritize space and shift away from apartment living in the wake of the pandemic,” Savills World Cities Index report said.
The report also noted that Dubai rental prices have been steadily declining over the past years because of a broad range of developments, triggering a considerable oversupply in the market. Last year saw the worst decline with a 12% plunge in rents across the city amid travel restrictions. This resulted in an economic downturn caused by the pandemic.