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Rental of Dubai housing stock to increase in price

Rental of Dubai housing stock to increase in price

There is no doubt about the profitability of real estate investments in Dubai, as it has a consistently high profitability index. The trend of increasing prices for rental properties has already been outlined in the third quarter of 2021. Budget housing has increased in price by about 14%, and in some areas, this figure has reached 30%. And if studio flats and apartments were previously leading, now many people are striving to live a more comfortable life. People are actively renting out penthouses and villas.

The rent increase is associated with Expo 2020. Over 400,000 foreigners have already visited the emirate in the first 10 days since its beginning. Approximately 25 million people are expected to arrive in the UAE within six months. It will increase the demand for housing in the community near the exhibition, such as Palm Jumeirah, Jumeirah Village Circle, Bur Dubai, City Walk, Deira, and others.

Expo 2020 was not the only reason for the rise in real estate demand. In particular, the state’s loyalty to expatriates facilitates the influx of investors. The authorities allowed the opening of foreign companies without the participation of residents. This situation boosted business activity. As a result, not only are rental prices rising but so are home purchases, sales, and housing costs.