The Dubai real estate sector has experienced a steady growth in rental rates in Q3, 2021, with an increase of 14 per cent in affordable housing and up to 30 per cent in luxury housing in select areas. As Expo 2020 Dubai begins in the fourth quarter, Zoom Property Insights predicts another strong quarter.
In its first ten days, the marquee event attracted 411,768 visitors, and it is expected to welcome up to 25 million visitors from around the world during its six-month run. The figures indicate that areas near the event site will remain busy during this world fair. These areas are expected to grow both in terms of rental prices and demand.
Dubai property market quarterly reports from different property portals show that the Q3 saw an increased activity in Jumeirah Village Circle (JVC), Al Nahda, Bur Dubai, Dubai Silicon Oasis and Deira for affordable flats, while tenants seeking luxury apartments for rent preferred Dubai Marina, Downtown Dubai, Jumeirah Beach Residence (JBR), Palm Jumeirah, and City Walk.
The most affordable villas in Dubai can be found at Mirdif, DAMAC Hills 2, JVC, Reem and Dubai South. Tenants chose to rent luxury villas in Jumeirah, Al Barsha, Umm Suqeim, Arabian Ranches and Dubai Hills Estate. Zoom Property Insights predicts that these areas will remain at the forefront in Q4, 2021 as well.
Shift in demand
Demand for large homes, the return of foreign investors to Dubai, and expat-friendly policies are some of the major reasons for the increase in property prices, besides the ongoing Expo 2020. A recently announced golden visa scheme and 100 percent ownership policies have also led to an increase in entrepreneurship and investment in Dubai. The change in policies is reflected in the rental property market, where both demand and prices have been growing this year.
“The promising statistics in 2nd and 3rd quarters of 2021 paved the way for a strong fourth quarter. Due to the ongoing Expo and a strong comeback by the Dubai property market post-pandemic setback, rental prices will see a significant increase in the last quarter,” said Ata Shobeiry, CEO at Zoom Property.
As the third quarter showed promising results, the fourth quarter is also predicted to witness a surge in property sales in addition to rentals. With 15,926 transactions valued at Dh42.35 billion, it was the best ever third quarter for transactions in the Dubai property market.