Last Updated on: 26th June 2023, 05:44 am
Dubai Residents Face Steep Rent Increases in The First Quarter Of 2023
Tenants in Dubai are concerned about runaway rent increases in several popular locations in the first quarter (Q1) of 2023. Many are paying more than 5% more on their renewed leases at Dubai Marina and Jumeirah Lake Towers (JLT).
Some of them expected rental growth to slow this year after the 2022 spike, but that won’t be the case this year.
Inexpensive locations like Discovery Gardens and International City are seeing rent increases of up to 4%, according to Asteco, a real estate company.
Palm Jumeirah has also seen a massive increase in rents over the past year, with the largest increase of 8% in the fourth quarter of 2022 and an overall year-on-year increase of 32%, making it the largest among Dubai’s major locations.
For their part, Dubai Marina, JBR, and Downtown saw increases of 28%, 28%, and 27%, respectively.
A 2-bedroom apartment in Dubai Marina is now available for around AED 90,000-185,000 per year while in JBR the rent for an apartment of the same size is around AED 110,000-170,000 per year.
Asteco reported that the gap between renters and landlords is widening, especially after a period of low rents, as landlords now seek to take advantage of favorable market conditions.
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