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Rental rates in Dubai will continue to rise in 2023, especially in major markets where demand exceeds supply, while affordable areas are likely to see moderate rental growth.
Rents in the emirate have tended to decline since 2014, but recovery has begun after the pandemic, as many foreign workers have returned with the recovery of the labor market, as well as the influx of wealthy people into the market.
David Aboud, a partner at real estate consulting firm Core, expects rents to rise across the board in 2023.
«It is expected that rent growth will continue in the primary market, as demand for this segment exceeds supply. Given that most of the upcoming supply will be transferred to areas with affordable and ordinary apartments, we expect that there will be relatively moderate rent growth in this market segment», Abud said.
Real estate industry executives reported that there are still many areas in both Old and New Dubai where rents are below the peak level of 2014.
David Aboud from Core says that the prestigious areas of Bur Dubai, Deira, as well as the areas of International City, Liwan, Dubai Silicon Oasis, Discovery Gardens, and Dubai Sports City, are among the most affordable residential areas in the emirate.
