Dubai: Rents will continue to rise in 2022, say industry experts
Rents in Dubai will continue to rise in 2022, with strong demand especially in the high-end and beachfront properties, say industry players.
Firas Al Msaddi, CEO of FAM Properties, said newly-handed over projects, particularly beachfront villas and apartments, will get a lot of attention in terms of rentals and prices.
“Waterfront villas, town houses and apartments demand will remain very strong and rents would increase due to the lack of supply. In addition, some ultra-luxury properties on Bvlgari Resort & Residence and the Palm will be handed over during 2022, which would also get lots of attention. We will continue to witness some slight increase on rent for apartments during 2022, with holiday homes trend getting stronger in Dubai,” he said.
According to real estate consultancy Asteco, apartment and villa rental rates continued to record a notable upward trajectory in third-quarter 2021, with quarterly increases of 3 per cent and 6 per cent, respectively.
Annual rental growth in the villa market was particularly significant with 19 per cent, whilst average apartment rental rates rose marginally by 3 per cent.
Ayman Youssef, vice-president, Coldwell Banker UAE, said: “We anticipate a moderate rise in the overall market in 2022, especially in prime apartment buildings providing high-quality units, modern amenities and services.
"The rents for villas and gated communities will continue to rise steadily. But apartment buildings that are not in communities, particularly the older properties situated in old Dubai may not do as well and may see a rent drop in the new year."
He added that apartments and newer buildings in Downtown, Creek Harbour and quality buildings in Dubai Marina will witness a quick rise in rentals.
“The last quarter of 2021 saw a rise in the rents of villas and gated communities and we are anticipating a steady rise in 2022 too especially in areas such as Dubai Hills, Emirates Living and Reem Community. Apartments in old Dubai may witness a further fall in rents,” he added.
“As things ease down and life begins to get back to normal, we see a reverse shift back from urban to city centre areas such as downtown which is hustling with various activities, nightlife and shopping,” he added.