The Dubai rental market showed a strong recovery in 2021 as the economy continued to recover, which was aided by a successful vaccination program and gradual opening of international borders, according to media reports. Experts also mentioned that villas and apartment rents in Dubai will continue to rise this year but at a slower pace.
Going by the latest report released by ValuStrat, analysts and industry specialists pointed out that market sentiments are expected to pick up further this year and also mentioned that rents for residential and commercial properties would continue to rise in 2022.
A section of the report reads, “2021 was a year of recovery from pandemic challenges and a beginning of the new normal. Prices and rents mostly recovered to pre-pandemic levels, record-breaking sales volumes and values.” Haider Tuaima, head of Real Estate Research at ValuStrat, said the ValuStrat Price Index (VPI) for Dubai’s rental values showed 67.3 points last year, up 6.7 percent quarterly and 18.9 percent annually.
But, rent is still averaging 4.9 percent lower than when the Covid-19 pandemic began and the weighted average annual rent for apartments as of the fourth quarter of 2021 was Dh58,707 and for villas was Dh236,650.
Tuaima told the media, ““No doubt villas performed better than apartments as far as rents are concerned. Villas up 26.8 per cent year-on-year basis and 6.3 per cent quarter-on-quarter basis while apartments’ rents grew 14.3 per cent year-on-year basis and 6.9 per cent quarter-on-quarter basis.”