Rental prices in Dubai hit record high in 2022
The real estate market in Dubai is showing new records. Rental prices for houses, villas and apartments continue to skyrocket. The Metropolitan Group released an update at the end of Q3 2022 on rent growth.
Metropolitan Group data:
- The average rental price for villas is $73,000 per year (or $6,083 per month)
- The average apartment rental price is $24,500 per year (or $2,041 per month)
- The growth of rental rates is about 30% year-on-year (from Q3 2021 to Q3 2022).
The super-rich people prefer Dubai as a second home for living and recreation. Some leases are in excess of $270,000. Experts believe that the increased interest of wealthy people in Dubai is fueling the local real estate market. In the near future we may expect new records. There are no restrictions on the growth of rental rates yet. In 2023, we can expect a new round of growth in property and rental prices.
If you look at prices in prestigious areas, for example, in Palm Jumeirah, where high prices for renting and buying real estate are commonplace, there was a place for new records. Homes in Palm Jumeirah are selling for $160 million and rental prices can be around $1 million a year. Renting houses and villas for $ 1 million in Dubai is becoming commonplace. Dubai attracts many rich people with high income every year, so the requirements for houses and apartments under construction are also changing. Wealthy clients are more demanding on the quality and interior of real estate. Therefore, they require the highest quality finishing materials and expensive interior items. At the same time, there is a shortage of offers in the real estate market. For example, there are not enough free houses to buy in the Palm Jumeirah area, which affects the rise in prices.
The main investors in real estate in Dubai are clients from Europe and the CIS. Ready-made properties are sold out instantly, and in some cases they are purchased before going on sale. All this was also reflected in the secondary real estate, which has risen in price by more than 10% year on year.