STOCK Dubai Marina skyline
The Dubai real estate sector has witnessed an upward trend in the rental market in Q3, 2021. Image Credit: Shutterstock

Dubai: The Dubai real estate sector has witnessed an upward trend in the rental market in Q3-2021, with an estimated 14 per cent increase in affordable housing and up to 30 per cent increase in luxury housing in selected areas. The fourth quarter is expected to follow suit with the commencement of Expo 2020 Dubai, according to Zoom Property Insights.

The first ten days of Expo 2020 recorded 411,768 visitors, and it is expected to welcome up to 25 million visitors from different countries throughout its six-month run. From these figures, it can be ascertained that the areas located close to the event site will remain busy during this world fair. There is an expected growth both in terms of rental prices and demand in these areas.

Dubai property market quarterly reports from different property portals show increased activity in Jumeirah Village Circle (JVC), Al Nahda, Bur Dubai, Dubai Silicon Oasis, and Deira for affordable flats, while tenants seeking luxury apartments for rent preferred Dubai Marina, Downtown Dubai, Jumeirah Beach Residence (JBR), Palm Jumeirah, and City Walk.

Mirdif, DAMAC Hills 2, JVC, Reem, and Dubai South topped the charts for affordable rental villas. For luxury villas, Jumeirah, Al Barsha, Umm Suqeim, Arabian Ranches, and Dubai Hills Estate remained the top pick of tenants. As per Zoom Property Insights, these areas will remain at the forefront in Q4-2021 as well.

Shift in demand

The shift of demand towards large homes, return of foreign investors to Dubai, and expatriate-friendly policies are the major reasons accredited to increase in demand and property prices, apart from ongoing Expo 2020. The recently announced golden visa scheme and 100 per cent business ownership policies have also resulted in increased entrepreneurial and investment activities in Dubai. The change due to these policies are reflected in the rental property market, as both the demand and prices are witnessing substantial growth this year so far.

Due to the ongoing Expo and a strong comeback by the Dubai property market post-pandemic setback, rental prices will see a significant increase in the last quarter

- Ata Shobeiry, CEO at Zoom Property

Apart from the rental market, property sales are also expected to witness a surge in the current quarter due to promising results in the previous quarter With 15,926 deals worth Dh42.35 billion, it has become the best ever third quarter vis-à-vis transaction value in the history of the Dubai property market.