According to industry players, rents in Dubai will continue to rise in 2022, with strong demand, especially for high-end and beachfront properties.
Founder and CEO of FAM Properties, Firas Al Msaddi, said newly completed projects, particularly beachfront villas and apartments, will do well in terms of rental rates and prices in the near future.
“Waterfront villas, townhouses, and apartments demand will remain very strong and rents would increase due to the lack of supply. In addition, some ultra-luxury properties on Bvlgari Resort & Residence and the Palm will be handed over during 2022, which would also get lots of attention. We will continue to witness some slight increase on rent for apartments during 2022, with holiday homes trend getting stronger in Dubai,” he said.
Asteco reports that apartment and villa rental rates continued to rise in the third quarter of 2021, with quarterly increases of 3 percent and 6 percent, respectively.
There was a 19 percent increase in annual rental rates in the villa market, while apartment rentals increased marginally by 3 percent.
Ayman Youssef, the vice-president, Coldwell Banker UAE, said: “We anticipate a moderate rise in the overall market in 2022, especially in prime apartment buildings providing high-quality units, modern amenities, and services.
“The rents for villas and gated communities will continue to rise steadily. But apartment buildings that are not in communities, particularly the older properties situated in old Dubai may not do as well and may see a rent drop in the new year.”
He further added that apartments and newer buildings in Downtown, Creek Harbour, and the quality buildings in Dubai Marina will see a quick rise in rental rates in the coming months.
“The last quarter of 2021 saw a rise in the rents of villas and gated communities and we are anticipating a steady rise in 2022 too especially in areas such as Dubai Hills, Emirates Living, and Reem Community. Apartments in old Dubai may witness a further fall in rents,” he added.
“As things ease down and life begins to get back to normal, we see a reverse shift back from urban to city centre areas such as downtown which is hustling with various activities, nightlife, and shopping,” he added.