12.46 PM Thursday, 28 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:57 06:11 12:27 15:53 18:37 19:51
28 March 2024

Dubai residential rents rise marginally in June

Published
By Parag Deulgaonkar

Residential rents in Dubai rose mere 0.16 per cent month-on-month (m-o-m) in June, according to Reidin.com rent index.

The June increase took the year-on-year (y-o-y) increase to 23.7 per cent.

The apartment index saw a 0.13 per cent mom, while it increased by 1.76 per cent m-o-m in May. The index saw an annual increase of 26.6 per cent.

Villa rental index registered an increase of 0.30 per cent (m-o-m) and 10.7 per cent y-o-y. In May, villa rents went up by 0.37 per cent m-o-m.


Though Dubai is expected to see a supply of 90,000 new units by 2018, as estimated by HSBC Global Research, the bank believes the market will absorb – fairly easily — the new supply even if the population grows less than 5 per cent per year.

“We believe that we have not yet reached the peak of the cycle, and that the market can continue to absorb the expected supply additions over the next few years, even at a population growth rate below 5 per cent,” the global bank said in April.

Dubai is the host city for Expo 2020. The Expo will inject over Dh140 billion in Dubai’s gross domestic product, create nearly 277,000 new jobs and draw over 25 million visitors to the country.

However, a CBRE report said in July that residential rentals will continue to see rise throughout 2014 in Dubai, leading to cost conscious tenants to relocate to Northern Emirates.


Property prices rise




Although UK-based Knight Frank, a real estate consultancy, reported an annual price growth slip from 11.7 per cent in Q1 2014, to 6.3 per cent in Q2 2014, in Dubai’s luxury property market, Reidin.com said residential property prices performed “still well” in June.

The Dubai residential property sales price index rose by 1.28 per cent m-o-m and 36.2 per cent y-o-y.

Apartment sales prices rose 1.12 per cent m-o-m and 39.7 per cent y-o-y, while villa sales prices went up 1.97 per cent m-o-m and 23.1 per cent y-o-y.

Real estate transactions rose by 4.6 per cent to Dh113 billion in the first six months of 2014 to Dh108 billion during the same period last year, according to Dubai Land Department.