Khaleejtimes: Palm Jumeirah has registered the highest rental rates for both apartments and villas

Average rents in Dubai grew by 28.5 per cent in the 12 months to January 2023 — the Emirate’s highest rental growth on record. According to real estate services and investment company CBRE, average apartment rents grew by 28.8 per cent to reach Dh98,307 during this period. Villa rents reached Dh290,242, registering a growth of 26.1 per cent.

Palm Jumeirah has registered the highest rental rates for both apartments and villas, with average annual asking rents currently standing at Dh258,529 and Dh1,032,763, respectively, CBRE said in its Dubai Residential Market Snapshot for February 2023.

“While the annual rate of growth is at record highs, we are seeing that an increasing number of listings in core communities are starting to decrease their listed price, indicating that in parts the market is reaching its peak,” said Taimur Khan, head of Research – Mena at CBRE in Dubai.

 
According to the market snapshot, residents can get an apartment for less than Dh30,000 a year in International City. The next most affordable area for rents is Dubailand Residence Complex with an average rent of Dh41,700. Based on average apartment sizes in each community, across all unit mixes, here are the rents in key areas, according to the report:

Strong residential market
Meanwhile, the company said activity in Dubai’s residential market started the year on a “strong footing” as total transaction volumes reached 9,229 in January 2023, marking a growth of 69.2 per cent, compared to the year prior. Over this period, off-plan sales grew by 88.1 per cent and secondary market sales by 51.4 per cent.

In the year through January 2023, average residential prices grew by 10.6 per cent. Average apartment prices increased by 10.3 per cent, while those for villas were up 12.9 per cent. Average apartment prices in Dubai, as of January 2023, stood at Dh1,196 per square foot, while those for villas hit Dh1,411.