Dubai’s residential rents witnessed a significant surge, with an annual growth of 27.2% in the third quarter of 2023 compared to the same period in the previous year.
Villa rentals, in particular, saw a substantial increase, rising by 38.7% annually.
Average Rental Rates by Property Type:
The average annual rents for different property types are as follows:
- Three-bedroom villas: Dh312,000
- Four-bedroom villas: Dh383,000
- Five-bedroom villas: Dh492,000
- Studio apartments: Dh51,000
- One-bedroom apartments: Dh75,000
- Two-bedroom apartments: Dh111,000
- Three-bedroom apartments: Dh170,000
Dubai’s residential occupancy rate was estimated at 88.9% during the third quarter, reflecting strong demand in the property market.
Dubai Real Estate Market Growth:
The Dubai real estate market showed remarkable growth in Q3 2023, with a 22% increase in transactions compared to the same period in 2022.
The total worth of these transactions surged by 40% year-on-year, reaching Dh97.55 billion.
Dubai’s Commercial Real Estate Performance:
Dubai’s office space market also performed well in Q3 2023, with a 25.5% annual increase in capital gains.
Several central business districts in the city witnessed double-digit annual growth, reinforcing Dubai’s status as a vibrant commercial hub.
Increased Demand for Office Space:
Office transactions grew 9.0% year-on-year in Q3 2023, indicating sustained demand in the office space segment.
The report also highlights valuation expansions in Grade A and Grade B office spaces.
