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Dubai’s residential rents in popular neighbourhoods went up by over 40% in the third quarter of the year compared to last year due to continued strong demand.
Villa tenants saw the biggest increases in annual housing costs, with three-bed units in Dubai Hills rising by up to 46% year-on-year and MBR City’s four-bed properties posting a jump of up to 42% jump in yearly leasing rates, according to data shared on Thursday by Chestertons MENA.
Two-bed apartments in MBR City posted the biggest increase, going as high as 29%, while similar units in other areas like Dubail Hills and Dubai Marina registered up to 28% and 21%, respectively.
The real estate advisory also saw substantial increase in the cost of renting commercial space around Dubai, with hikes of more than a third in some business zones. Sales prices also surged by up to 28%.
“Dubai’s real estate sector continues to flourish, with residential and commercial property in significant demand,” said Nicky Witty, CEO of Chestertons MENA.
Recent data from the Dubai Land Department (DLD) also continued to show strong interest from buyers, with the volume and value of sales transactions climbing by 22% and 40%, respectively.
“Dubai’s allure in the real estate real remains unwavering, and the third-quarter performance solidifies its position as a beacon for investment,” Adham Younis, Group CEO of D&B Properties said early this month.
Chestertons’ research
Chestertons had reviewed the residential and commercial leasing and sales prices in some of Dubai’s most in-demand areas.
The research covered ready homes in Palm Jumeirah, Downtown Dubai, Dubai Hills, Mohammed Bin Rashid City and Dubai Marina, and commercial space in Jumeirah Lakes Towers, Business Bay, Barsha Heights and Dubai Investments Park.
As for sales prices, villa buyers saw year-on-year increases of up to 34% in Dubai Hills, while those looking for apartments saw increases up to 25% in MBR City and also in Dubai Hills.
Sales prices for commercial space went up the most in Jumeirah Lakes Towers, with a hike of 29%, followed by Business Bay, with an increase of 14%.
(Writing by Cleofe Maceda; editing by Seban Scaria)
