The Dubai Land Department (DLD), in cooperation with Property Finder, has launched Dubai’s first-ever official Residential Rental Performance Index (RRPI).
In January 2022 the overall monthly Index recorded 0.938 and an index price of AED 51,101. For apartments, the monthly Index recorded 0.943 and an index price of AED 46,994, while for villas and townhouses, the monthly Index recorded 0.868 and an index price of AED 131,882.
For RPPI, the base year is 2013, the base month is January 2013, and the base quarter is the first quarter of 2013. In January 2022, 51,452 leases were recorded in the index, 52percent of which were new contracts, 48percent were renewed contracts, 81percent were annual contracts, and 19percent were non-annual leases.
The Dubai RPPI was released for the first time ever in partnership with DLD and Property Finder. Within this insightful data, there is a plethora of information that is quite notable. In 2021, there were 564,036 real estate leases throughout the year, breaking a 12-year record.
Compared to 2020, annual leases increased by 50.3 percent and non-annual leases by 75.5 percent in 2021. It is interesting to note that, on average, the number of leases has increased by approximately 7 percent over the past 5 years, but in 2021 it increased by 56 percent. In 2020, however, annual leases increase by 2 percent compared to 2019 and non-annual leases increase by 115.2 percent. There is a lot of information to uncover and release into the market for full transparency, and data always beats opinion.
Over 51,452 rental contracts were signed in Dubai in January 2022 with an even split between new and renewed contracts. According to Property Finder data, the most popular apartment rental contracts were for 2 bedroom apartments, followed by 1 bedroom, and the most popular villa/townhouse contracts were for 3 bedrooms, followed by 4 bedrooms.
The top areas that saw the registration of the most rental contract in January 2022 according to Ejari Registrations were Jabal Ali First with 1,811 registrations followed by Naif with 1,760. Al Karama (1,754), Al Warsan First (1,601), and Al Suq Al Kabeer (1,457) were also part of the top 5 areas in 2021. These were followed by Business Bay (1,317), Al Nahda Second (1,276), Barsha South (1,192), Marsa Dubai (1,174), and Nadd Hessa (1,098). In total the top 10 areas accounted for 28 percent of all rental transactions in January 2022.
According to Property Finder’s proprietary data, Dubai Marina accounted for more than 11percent of all residential rental searches in 2021. Next came Downtown Dubai, Business Bay, Jumeirah Village Circle, and Jumeirah Lakes Towers.