Rental growth of 15-20% has been recorded in Dubai. What to expect from the market?

Throughout Dubai, rental rates have been rising since the beginning of 2022, and analysts predict that by September the situation will gain even more momentum. From April to June, the average quarterly increase in the emirate for apartments and villas was 4% and 6%. In comparison with the figures of the previous year, in the same period of time, the growth was 15 and 23%, respectively. In some areas, for example, in Business Bay and Downtown Dubai, horse racing was the highest, compared to the market average.

After a long break, even the rent in Sharjah is gradually rising.

Meanwhile, Business Bay and Downtown have seen a jump of more than 20% over the past year. Even in Deira, where many buildings have undergone major repairs or reopened, rents increased by 12% in the 12 months to the end of June, with the average cost of renting two-bedroom apartments ranging from AED 40,000 to AED 80,000 per year.

Regarding medium-term rental trends, analysts expect rental rates to remain elevated in the second half of the year, but growth is expected to eventually slow down as oversupply remains a persistent problem. However, at the moment, the rent growth is off the scale.