Dubai: Tenants in Dubai hoping rental gains would slow down during the first quarter of 2023 will be disappointed - rents kept increasing across most popular locations with those at Dubai Marina up 6 per cent JLT residents having to pay 5 per cent or more on their renewals.
Many residents had been hoping some slow down would be there in rental increases after the hot streak Dubai’s property market recorded in 2022 and for the most part of the year before that as well. Even affordable locations such as Discovery Gardens, International City too have had landlords asking for more, by 4 per cent on average, according to the latest update from the property firm Asteco.
As for Palm Jumeirah, even after all the spikes it had in 2022, the last quarter still had room for a further 8 per cent gain over Q4-22. On a 12-month basis, Palm’s up 32 per cent - the highest across any major location in Dubai.
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The three tower clusters of JBR, the Downtown and Dubai Marina were close behind at 28, 28 and 27 per cent, respectively.
What all this means in real terms
For a tenant in Dubai Marina, a two-bedroom could be anywhere from Dh90,000-Dh185,000 a year, with new or high quality buildings commanding a sizeable premium.
At JBR, which in recent months has strengthened its hotspot status, with 2-beds at between Dh110,000-Dh170,000.
“There has inevitably been a growing gap between landlord and tenant expectations,” says the Asteco report. “After years of decreasing rents, many landlords have aggressively sought to benefit from favourable market conditions.
“This has resulted in attempts to secure significant rental increases at lease renewal and invariably resulted in the increasing application of eviction notices.”
More to follow…