Rental rates in mid-priced and prime locations are growing due to limited supply and high demand from ultra-high net worth individuals (UHNWIs). Residents continue to seek bigger homes.
While the villa sector saw the largest growth, luxury apartments were also in demand. In the near future, it is expected that rents will continue to increase in the areas below.
Villas: Palm Jumeirah, Emirates Hills, The Springs, The Meadows, The Lakes and The Arabian Ranches.
Luxury apartments: City Walk, Downtown Dubai, Dubai Marina and Palm Jumeirah.
According to CORE real estate consultancy, the increase was uneven, ranging from 3% to 15% year-on-year.
Meanwhile, property management experts at Asteco released a report for the second quarter of 2021, which showed that Greens, Business Bay and Dubai Marina saw the fastest pace of rentals growth.
The leading villa locations were The Arabian Ranches, Dubai Hills Estate, Mirdif, The Meadows and Palm Jumeirah.
According to Asteco, average rental rates increased by 10% on an annualized basis.
The most expensive villa was let on Palm Jumeirah for a mind-blowing $1.03 million.
The luxury villa rental segment is expected to record the strongest growth, underpinned by Expo 2020.
In the near term, the following villa locations are expected to see a considerable increase in rental rates: Arabella, Mira, Sidra, Maple, Dubai South, Palm Jumeirah, Emirates Hills, The Springs, The Meadows, The Lakes and The Arabian Ranches.
Rental rates for upscale apartments are projected to rise in City Walk, Downtown Dubai, Dubai Marina and Palm Jumeirah.