Improved confidence in Dubai economy and real estate sector is pushing up rentals further in some areas in Dubai during the first quarter of the year.
According to latest report by Asteco, rentals for apartments and villas in Dubai have grown by 3 percent and 4 percent respectively during the period January to March this year, in comparison to same period last year.
Over the past one year, the average rental increases stood at 19percent for apartments and 21 percent for villas. The International City saw considerable hike in rentals where the rental for a double bedroom unit increased by 8percent touching Dh.40,000, while most other areas recorded increases of about 3 percent.
Cluttons, the leading real estate specialist in the UAE, also noted the same trend, citing upward movement in rentals, driven by renewed economic confidence.
There has been a healthy growth in rents recorded at the lower end of apartment market, as growing rental values drive tenant to low budgetary options, said Richard Paul, Head of Residential Valuations at Cluttons, UAE.
This year, increase in rentals has been noted in commercial spaces too. According to Asteco, the Dubai Investments Park has recorded 13 percent rise in rentals, while Jumeirah Lakes Towers saw 20 percent and Tecom witnessed 25 percent surge in rentals respectively.
A senior consultant for residential leasing and sales at Better Homes, Robert Kerr, said that rent increases is across the board. There has been an increase in rental in general, but it is only for the high-end and desirable properties.
Meanwhile, with increase in rentals, sales prices for apartments and villas in Dubai have also grown by 12 percent on an average for apartments and 5 percent for villas, Asteco said.