Prices in the rental market in Dubai are growing rapidly in favor of landlords

In Dubai, the rental market has seen an increase in prices after the COVID-19 pandemic. Landlords began to charge higher rents than in the previous two years. However, experts disagree on what the Dubai real estate market is waiting for in the future. Some of them suggest that rents are likely to «get even higher».

«Rents for housing in Dubai have decreased by an average of 40% since the end of 2015, reaching a minimum in 2020 amid the COVID-19 pandemic. Last year there was a new cycle in the real estate sector, initiated by an increase in the cost of capital and record sales volumes, the rental market followed suit: in the 12 months of 2021 there was a record growth of 18.9%», said Haider Tuaima, Head of Research at ValuStrat.

Rachel Kennerley, Associate Director at Savills said: «While landlords are seeking rent increases to offset losses in recent years agreed during the pandemic, Savills ensures that all rent increases comply with the requirements of the Real Estate Regulatory Agency (RERA)».