Rents for apartments over Dubai have started to rise following months of persistent decline, as sentiment in the market carried on to improve, as per the new report.
Asking rates for properties in Business Bay, Dubai Marina and Greens provided the highest average rise of 4% during the initial three months of the year in comparison to the last quarter, Asteco’s latest data provided.
The price of renting apartments in Downtown Dubai also went up by 3% during the same period, while other places like the Dubai International Financial Centre (DIFC), Palm Jumeirah, Sheikh Zayed Road, Jumeirah Beach Residence, and Jumeirah Lakes Towers also rise by an average of 2%.
However, the rental market remains subdued in comparison to the last year, with yearly rental falls averaging between 7% and 15%.
A few places in Dubai have also seen a carried-on fall in recent months, with properties in International City recording a 2% fall and Discovery Gardens posting a 1% decline in the first quarter of 2021 in comparison to the three months earlier.
“Rental rate growth in Q1 2021 was nothing short of a mixed bag with positive and negative changes recorded on an inter (across) and intra (within) community level,” the report said.
“It should be noted, however, that Asteco recorded significant fluctuations across different developments and/ or buildings ranging from single-digit declines to double-digit increases.”
Property prices rise
Dubai’s market has been fairly floated by request from purchasers who are hoping to claim a piece of property, especially ready-to-occupy villas, as nations overall grapple with the Covid pandemic.
With the rise in demand, villa sales costs went up significantly during the Q1 of the year in comparison to a year ago.
Residential units in Jumeirah Park saw the biggest year-on-year price hike of 15 percent, followed by properties in Springs (13 percent), Meadows (9 percent), and Palm Jumeirah (8 percent).
“Indeed, it would appear that COVID-19 has proven the catalyst for the current rally,” Asteco said.
However, the apartment market is still suffering a fall in comparison to last year, with sales prices over the city falling between 2% and 6% year on year.
When compared to the last quarter, sales prices showed a rise of between 3% and 5%.