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      To renew the lease or relocate? Let the Dubai rental market report 2023 help you decide

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      Life

      by Ruman Baig
      1 hour ago

      The Dubai rental market is experiencing a transformation, with the latest report shedding light on intriguing developments.
      In recent years, Dubai’s rental market has witnessed a remarkable resurgence, effectively ending a period of negative growth that spanned from mid-2015 to late 2021.
      As of July 2023, the data from the Dubai Land Department reveals a staggering 43.5% increase in the total number of tenancy contracts registered compared to the same period in 2019, reaching a total of 325,727 contracts.
      This impressive growth has translated into average apartment rents reaching their highest levels since February 2017, and villa rents hitting record highs.
      However, beneath these headline figures, a significant divide has emerged in the rental market. The number of new contracts registered has dropped by 12.6%, while renewed registrations have grown by 29.0%. This suggests that tenants are opting to renew their leases rather than relocate due to the higher rates prevalent in new leases, especially in prime residential areas. These tenants are leveraging the protection offered by the RERA rental regulations, which cap annual rental increases at a maximum of 20.0%.

      To provide a comprehensive view, the report analyzed nearly 703,000 residential rental transactions between January 2018 and July 2023, focusing on both apartments and villas. In the apartment segment, it covered 23 different free-hold communities, while for villas, it encompassed 20 free-hold areas.
      For apartments, a noteworthy shift has occurred. Historically, new rental contracts averaged a 5.0% discount compared to renewed contracts between January 2018 and July 2021. However, with increasing demand, this trend has reversed, and in July 2023, new rental contracts commanded an average premium of 20.1% over renewed contracts.
      This change is not uniform across all communities; prime and core markets like Downtown Dubai, Palm Jumeirah, and Business Bay started achieving premiums on new rental contracts in early 2021. Although, secondary neighborhoods have seen relatively negligible premium growth compared to prime areas.
      In the villa segment, supply constraints have led to a different dynamic. Demand for single-family homes has surged, resulting in a 29.9% increase in the number of tenancy contracts registered compared to 2019 levels as of July 2023. Consequently, new rental contracts command an average premium of 25.2%. While this is slightly down from its peak in December 2022, the premium continues to hold strong.

      In conclusion, the Dubai rental market is witnessing a fascinating interplay between new and renewed contracts, with varying trends across different segments. Understanding these dynamics is crucial for both tenants and landlords navigating this evolving market.
      – For more on luxury lifestyle, news, fashion and beauty follow Emirates Woman on Facebook and Instagram
      Images: Supplied by CBRE Mena  More

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      in lifestyle and culture

      Discover property sale and rental prices in Dubai with this innovative tool

      by

      Life

      by Ruman Baig
      1 hour ago

      Looking to enhance your property related decision-making process? Here’s how you can navigate through Dubai’s real estate scenario.
      As the city gains popularity, prices have been steadily climbing after the pandemic, attracting more individuals to settle in. Dubai’s real estate scene is on the rise, bustling with opportunities for both buyers and renters. However, whether you’re negotiating your rental terms or considering a purchase, grasping where you stand in relation to the market rate can pose a challenge.
      To empower you with better choices, a fresh real estate tool has emerged, aiming to reveal recent rental and sale figures in your vicinity. Introducing Datahub by the esteemed real estate brokerage, Allsopp and Allsopp. Leveraging sales data from Dubai Land Department (DLD), this tool unveils the latest trends in any corner of Dubai.

      Regardless of whether you’re a seasoned local or an aspiring explorer of new neighbourhoods, Datahub lays out the most recent property deals spanning sales and rentals. The data can be fine-tuned to reflect the past week, two weeks, or even windows of 30, 60, or 90 days. Tailoring your search is made easy, filtering by bedroom count, property type (be it a villa, apartment, townhouse, etc.), and your preference for off-plan or ready-to-move properties.
      Accuracy is paramount. The provided results offer insights right down to the transaction date, property specifics, and even unit numbers.
      If you’re eyeing a particular building, it’s worth noting that filtering by tower isn’t an option. However, all outcomes within a region showcase the building’s name and number. This way, you can effortlessly spot any recent sales or rental activities linked to that building within your chosen time frame.
      – For more on luxury lifestyle, news, fashion and beauty follow Emirates Woman on Facebook and Instagram
      Images: Instagram: feature image: @visitdubai More