According to the latest ValuStrat findings, villa and townhouse rents went up by 3.9 percent.
Housing costs in Dubai continued to go down in the first three months of the year, overall residential rents fell by an average of 11 percent compared to last year, data from real estate consultancy ValuStrat showed.
From January to March 2021, flats registered the sharpest fall in rent costs, which was 18.4 percent, although the cost of renting villas that have gained popularity during the COVID-19 pandemic and the lockdown, rose by 3.9 percent.
Dubai’s real estate market had been subdued even before the COVID-19 outbreak mainly because of a huge supply glut. During the coronavirus lockdown demand continued to drop, although sales transactions, mostly for ready-to-occupy units, has started to pick up gradually since the COVID-19 restrictions were eased in the middle of last year.
According to some analysts' forecasts, in 2021 the residential market will experience continued pressure as more housing supply comes on to the market. For this year, estimated upcoming supply currently stands at 46,316 apartments and 10,563 villas and townhouses.
In the first quarter of 2021, average annual rents for studio apartments stood at USD 9,500, rents for one-bedroom apartments stood at USD 14,200 per year on average and three-bedroom apartments cost USD 31,000 per year to rent.
Renting two-bedroom villas costs roughly USD 28,000 per year, while three-bedroom units require a housing budget of USD 40,000 per year and four-bedroom properties – USD 57,700.
The average occupancy of residential properties across Dubai was estimated to be around 80 percent.