where they rose and fell in Q3, 2022 | Tech Rasta


What? What was the general market movement in Dubai in the third quarter?

Up and up and up – as it has been all year.

Average rental rates for houses and villas continued to rise in the third quarter with 4 percent and 5 percent increases, respectively, property consultant Asteco said.

On an annual basis, average rents increased by 22 percent while median rents increased by 15 percent over the past 12 months, it said.

This has led to an increase in tenancy disputes and eviction notices as landlords seek to capitalize on market conditions.

“While some tenants are inclined to use the Rera Rent Calculator to negotiate rent, others are willing to pay more than the Rera stipulated rental rates to avoid conflict and the possibility of incurring relocation costs and end up paying higher rental rates to new tenancy agreements,” Asteco said in its third quarter report.

Rental rates are expected to “remain high” through the end of the year and 2023, but growth is expected to slow due to increased supply, it said.

The recovery of Dubai’s property market has gained momentum this year as its economy continues to recover from the headwinds caused by the pandemic.

The emirate’s economy grew by 6.2 percent in 2021, according to preliminary data from the Dubai Statistics Center. In the first three months of this year, Dubai’s gross domestic product increased by 5.9 percent, according to government data.

Paying annual rent in one check is on the rise again in Dubai, according to Q3 2022 Market Reportfrom real estate company Betterhomes, according to figures released by the Dubai Land Department.

It found single check payments rose 8 percent compared to last year. Paying with a single check is the most popular form of tax collection for the year, accounting for 32 percent of transactions.

Meanwhile, total transactions from January to September 2021 versus January to September 2022 rose 71 percent year-on-year, according to agency Allsopp & Allsopp.

And ValuStrat put rental rate growth at 25.3 percent annually, with a quarterly increase of 7.8 percent.

It said the average annual rent for two-bedroom villas stood at Dh141,000 ($38,393), three-beds for Dh210,400 and four-bedroom villas for Dh278,500.

Atlantis Royal Residences and more luxury residential complexes on the waterfront of Palm Jumeirah in Dubai.  Bloomberg

Where is the biggest ride in Dubai?

Similar to the sharp increase in prices witnessed in the prime sales market, rents in prime locations also increased significantly.

Apartments at The Palm Jumeirah and Downtown Dubai had annual increases of 22 percent and 24 percent, respectively, while in the villa segment, The Palm recorded a 32 percent rise and Dubai Hills a 33 percent increase, according to Asteco.

Prime residential values ​​in Dubai, which include the Palm, Emirates Hills and Jumeirah Bay, have increased by 89 per cent in the past 12 months, Knight Frank said, amid an influx of high-net-worth individuals and a lack of quality supply. .

What about the supply of units?

Total estimated completions through the third quarter reached 16,063 apartments and 3,471 villas, according to ValuStrat. It said this is equivalent to 40 percent of the previous estimate for the full year.

Notable apartment completions were Creek Views at Creek Al Jadaf Beach with 634 units, Grand Dubai Creek Harbor with 559 properties and Sol Apartments Dubai Production City with 235 units.

Newly built houses were completed in Akoya Oxygen Aquilegia, Avencia 2 and Odora, a total of 1,156 properties.

According to developers’ schedules, 21,720 apartments remain under construction, with 57 percent located in Mohammed bin Rashid City, Jumeirah Village Circle and Downtown Dubai, ValuStrat said.

Meanwhile, Asteco said there has also been a resurgence in construction activity for previously stalled projects as developers seek to capitalize on the current boom.

The third quarter of 2022 “recorded a series of new project launches and handovers, supported by strong transaction activity. [for off-plan and completed properties] across all asset classes”, it said.

Asteco projects another 7,650 apartments will be built in the fourth quarter, along with 1,000 villas.

Updated: November 01, 2022, 6:34 AM


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