The residential market in Dubai recorded rental rate increases in a vast majority of communities in Q2 2021, with an average growth of 3% and 8% for apartments and villas respectively. Whilst average apartment rental rates remained in contraction at 3% compared since Q2 of 2020, villa rental rates grew by a remarkable 10%.
The rise of demand has been on the villa market and despite positive market sentiments, apartment rental rate growth appears to be inflated as new supply outperforms population growth.
Apartment rental rates in Abu Dhabi recorded a marginal decline of 1% since Q1 2021, although several properties remained stable due to previously recorded drops. However, the annual rate of decline was pronounced at 8%.
Several incentives such as multiple cheques, rent free periods and agency fees waiver have resulted in an increase in demand for high-quality buildings situated on Reem Island and Al Raha Beach. Like last quarter, the tenant movement was dominated by residents looking to upgrade homes, particularly with respect to villas and townhouses. This was facilitated by the increased availability within the mid to high end sector.
Information Credits: Asteco
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