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by Arabnews.com — RIYADH: Dubai’s residential rental market has experienced an upswing in activity over the past two years, ending a negative growth cycle that persisted from mid-2015 until late 2021, according to real estate services firm CBRE. In its latest report, the company disclosed that in the year-to-date figures up to July 2023, there was a 43.5 percent increase in the total number of tenancy contracts, reaching 325,727, compared to the agreements recorded during the same period in 2019. The analysis examined about 703,000 residential rental transactions between January 2018 and July 2023, including apartments and villas. The report highlights a growing divergence between new and renewed rental rates as current market conditions compel tenants to remain in their residences. The data also presents a comprehensive analysis of recent trends in new and existing leases and offers insights into the future direction of Dubai’s housing market. According to the figures, average apartment rental costs have reached their highest levels since February 2017, as villa fees have also surged exponentially.
However, the market is undergoing significant fragmentation. The report highlights a 12.6 percent drop in the total number of new contracts registered, contrasted by a 29 percent growth in renewed lease signups. This suggests renters are becoming less inclined to relocate due to the additional costs associated with acquiring new leases, particularly in prime and core residential areas. Many tenants are also capitalizing on the protection provided by the Real Estate Regulatory Agency rental regulations. These directives aim to limit annual increases to a maximum of 20.0 percent, and achieving the highest permissible rate is rare in most cases.









