Due to persistently high demand, Dubai’s residential rents in sought-after neighborhoods increased by more than 40% in the third quarter of the year compared to the previous quarter.
According to data released on Thursday by Chestertons MENA, villa tenants experienced the largest increases in annual housing prices, with three-bed apartments in Dubai Hills climbing by up to 46% year over year and four-bed properties in MBR City seeing a surge of up to 42%.
Apartments with two bedrooms saw the largest increase, rising as much as 29% in MBR City, while comparable units in other neighborhoods including Dubai Marina and Dubail Hills saw increases of up to 28% and 21%, respectively.
In some business zones, the cost of renting commercial space increased by more than a third, according to the real estate consultant, which also noted a significant increase in this cost. Sales prices increased by up to 28% as well.
“Dubai’s real estate sector continues to flourish, with residential and commercial property in significant demand,” said Nicky Witty, CEO of Chestertons MENA.
The volume and value of sales transactions increased by 22% and 40%, respectively, according to recent data from the Dubai Land Department (DLD), further demonstrating the strong demand from purchasers.
“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 has examined the lease and sales costs for residential and commercial properties in several of Dubai’s most sought-after neighborhoods.
In addition to commercial space at Jumeirah Lakes Towers, Business Bay, Barsha Heights, and Dubai Investments Park, the research covered ready homes in Palm Jumeirah, Downtown Dubai, Dubai Hills, Mohammed Bin Rashid City, and Dubai Marina.
In terms of sales prices, individuals searching for villas in Dubai Hills experienced year-over-year hikes of up to 34%, while those looking for apartments in MBR City and Dubai Hills experienced rises of up to 25%.
Jumeirah Lakes Towers saw the largest increase in commercial real estate sales prices (29%), followed by Business Bay (14%).