Sign in
Sign up
Tenants in Dubai are increasingly seeking to buy property in the property, fearing eviction from landlords due to rising rents, said Richard Wade, managing director of the group of companies in the Dubai real estate sector.
According to the group's report for Q1 2023, the supply of new residential units remains limited in both the sales and rental markets, which means little relief for tenants and higher prices for buyers.
"Rising rents and fear of eviction are increasingly being cited by residents as the main reasons why they want to join the ranks of homeowners", Wade wrote in the preface to the report.
The emirate's real estate has experienced unprecedented growth, which began after the pandemic weakened, and continued this year.
According to official data released this month, the volume of real estate transactions in Dubai increased by 80% to AED 157 billion ($42.75 billion) in Q1 2023, compared with AED 87 billion ($23.69 billion) for the same period in 2022. The number of transactions also increased by 49% from 26,066 to 38,715 over the comparative period, and sales increased by 62% to AED 89 billion ($24.24 billion).
The occupancy rate of housing in the zones of unconditional ownership (freehold) remains stable, while the occupancy rate of rented space has reached a record high of 97%.
Rent is a direct reflection of supply and demand, and although the growth rate has slowed from 35% last year, prices are still growing at an annual rate of 16-20%.
As for the districts, Al Khail Heights saw the largest increase in apartment rents – by 14%, while Jumeirah Golf Estate, Al Habtoor City and Dubai Creek Harbour also showed double-digit growth.
