Housing in UAE more expensive after rising rents

Dubai: Housing has become more expensive in the leading state of Dubai in United Arab Emirates (UAE) as house rents have jacked up.

According to details, Dubai residential property rates have risen by 4.8 percent in the second quarter. This is the 10th consecutive quarter amid strong demand and strong economic growth.

Faisal Durrani, head of research partner for the Middle East and Africa at consultancy Knight Frank, said: “The relatively long period of rising prices shows no signs of slowing”.

In particular, the prices of villas in Dubai's prime locations, Jumeirah Bay Island, Emirates Hills and Palm Jumeirah, have increased by 11.6% in the second quarter and 125% since January 2020, with only eight villas under construction in these areas, he told.

The head of consultancy added that while villa prices in the rest of the city ‘remain supercharged’ and are up 5% from their 2014 peak, more affordable areas around Dubai are also experiencing strong price increases on a per square foot basis.

For example, villas in Dubai Hills Estate have registered a 24% high over the past 12 months, the fastest growth rate in the city, with a major factor behind this growth being the strong and sustained demand for luxury homes.

It found that Palm Jumeirah remains Dubai's top-performing villa market, with prices hiking by 09% in the second quarter alone, bringing the growth rate to 44% year-on-year.

Villa prices in Palm Jumeirah have increased by 146% since January 2020 to around AED 4,800 per sq ft. The prices of villa in the area are now 67% higher than their 2017 peak, while apartments are still 7% below their last peak in 2015.

Real estate experts stated Dubai's property boom isn't slowing down anytime soon. The property market in Dubai has bounced back strongly from COVI-19-induced slowdown.

The emirate's 10-year Golden Visa program Expansion initiatives, economic benefits from Expo 2020 Dubai and higher oil prices also supported the growth momentum of the property market.