Dubai Marina and JBR witnessed significant increases in property rent during the first quarter of 2023.
Dubai’s rental market has continued its hot streak in the first quarter of 2023, with rents increasing across the most popular locations, according to property firm Asteco. Tenants hoping for a slowdown in rental increases after a surge in Dubai’s property market in 2022 will be disappointed, as rents have increased by an average of 6% in Dubai Marina and 5% in JLT. Even affordable locations such as Discovery Gardens and International City have seen landlords asking for 4% more on average, with Palm Jumeirah experiencing an 8% gain over the fourth quarter of 2022 and a 32% increase on a 12-month basis.
Dubai Marina, JBR, and Downtown are the three tower clusters that recorded the highest percentage gains, at 27%, 28%, and 28%, respectively. Tenants in Dubai Marina can expect to pay between Dh90,000 and Dh185,000 per year for a two-bedroom unit, with new or high-quality buildings commanding a premium price. In JBR, a two-bedroom unit is between Dh110,000 and Dh170,000.
Asteco’s report states that “there has inevitably been a growing gap between landlord and tenant expectations. After years of decreasing rents, many landlords have aggressively sought to benefit from favourable market conditions.” The report also highlights that landlords are increasingly applying eviction notices as they attempt to secure significant rental increases at lease renewal.
Despite the high rental increases, Dubai’s property market continues to draw attention to itself, with Expo City emerging as the city’s newest budget-friendly property location, while JVC retains its top spot. The news comes as Manzil Life welcomes Sanjay Manchanda as its strategic advisor to supercharge property management and rental solutions in Dubai.
Dubai’s property market has remained robust, despite the ongoing challenges caused by the COVID-19 pandemic. According to the latest update from Asteco, rents have continued to increase across most popular locations in the city, with Dubai Marina experiencing a sharp rise of 6% and JLT residents having to pay 5% or more on their renewals.
While many residents were hoping for a slowdown in rental increases during the first quarter of 2023, the market remains hot. Even affordable locations like Discovery Gardens and International City saw landlords asking for more, with an average increase of 4%.
Asteco’s report also showed that Palm Jumeirah saw a further 8% gain over Q4-22, bringing its 12-month increase to 32% – the highest across any major location in Dubai. Meanwhile, the three tower clusters of JBR, Downtown, and Dubai Marina were close behind, with 28%, 28%, and 27% increases, respectively.
For tenants in Dubai Marina, a two-bedroom apartment could cost anywhere from Dh90,000 to Dh185,000 a year, with new or high-quality buildings commanding a sizeable premium. At JBR, which has recently strengthened its hotspot status, 2-bedrooms go for between Dh110,000 to Dh170,000.
The report noted that there has been a growing gap between landlord and tenant expectations, with landlords aggressively seeking to benefit from favorable market conditions. This has resulted in attempts to secure significant rental increases at lease renewal, and has also led to the increasing application of eviction notices.
Despite the high rental increases, Dubai’s property market remains an attractive investment destination for both local and international investors. Expo City has emerged as the city’s newest budget-friendly property location, while JVC retains its position as the top spot for investors.
Meanwhile, real estate management firm Manzil Life has welcomed Sanjay Manchanda as a strategic advisor to help supercharge its property management and rental solutions. Manzil Life is a tech-enabled, end-to-end property management platform that offers a range of services to help landlords and tenants manage their properties efficiently. Manchanda brings a wealth of experience in the real estate industry, having previously served as CEO of Nakheel, one of Dubai’s largest property developers.
