Dubai rental market skyrockets

by Editor

Dubai rental rates rose in all sectors from April to June as last year’s trend continued.

Asteco reported apartment rents grew 4% from the first quarter and villa rents rose 6%. Apartments saw 15% yearly rental growth and villas 23%.

Similar to the early days of the coronavirus pandemic, demand for villas and townhouses with outdoor areas remained robust. High-quality apartments in renowned neighborhoods and those near Expo 2020 also saw increased interest.

“Secondary areas with good community facilities, such as those near the Expo 2020 site (along the E311 and E611 corridor),” Asteco noted in its second quarter market report.

Expo 2020’s advantages, including infrastructure upgrades and site repurposing, will be felt for years (‘the Expo effect’).

It anticipates rental rates to “stay elevated” for the rest of the year, but growth will decelerate due to oversupply.

CBRE saw rents grow 21.2% annually for flats and 24.7% for villas, similar to Asteco.

Palm Jumeirah and Al Barari had the highest average annual apartment and villa rents, CBRE reported.

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