Skip to content Skip to Search
Skip navigation

Dubai rents soar by over 20% as inflation bites

Dubai property Creative Commons
Total property transactions in Dubai in the past six months are the highest they have been for 13 years

Dubai residential rents rocketed by 21.7 percent on average in the 12 months to June 2022, more than double the mean growth in sales prices.

The total volume of transactions in Dubai’s residential market reached 7,941 in June 2022, up 33.3 percent year-on-year, said research from real estate consultancy firm CBRE released today.

In the first six months of this year total transaction volumes reached 38,901, the highest since 2009.

Sales prices increased by an average of 10.1 percent year-on-year in June, with apartment sale prices rising 8.7 percent and villa sales seeing an average of 19.3 percent.

On an average price per square foot, Palm Jumeirah proved to be the most expensive at 3,365 dirhams ($916.27).

Average rents over the time period increased 21.7 percent year-on-year, with average apartment rents amounting to 85,294 dirhams and villas commanding average rents of 255,437 dirhams per annum.

Palm Jumeirah claimed the crown for apartment rents, with average rents topping 218,413 dirhams.

“Rents, on average, are increasing at the fastest rate since mid-2014,” Taimur Khan, head of research for the Middle East and North Africa at CBRE in Dubai, said.

The rental increases come as costs for businesses in the non-oil sector grew at the fastest pace for 11 years, according to the latest S&P Global UAE Purchasing Managers’ Index (PMI).

Rising food and fuel costs, on the back of the Ukraine war, means inflation has been a big issue for consumers around the world.

While businesses in the UAE have so far chosen not to pass rising costs on to their customers, this is unlikely to continue meaning residents will be faced with rising rents and increased cost of living.

A poll by Female Fusion, a UAE-based community of female entrepreneurs set up in 2015 and with more than 20,000 members across a range of industry sectors, found that 12 percent of respondents had recently already raised prices, while 60 percent said they planned to do so in the coming months.

Latest articles

FILE PHOTO: United Arab Emirates Minister of State for Foreign Trade Thani Al Zeyoudi gestures during an interview with Reuters in Dubai, United Arab Emirates, June 30, 2022. REUTERS/Abdel Hadi Ramahi/File Photo

UAE and Kenya complete Cepa negotiations

The UAE and Kenya have completed negotiations on a comprehensive economic partnership agreement (Cepa) between the two countries. It is the 12th Cepa deal secured by the UAE and its third in Africa, after agreements were signed last year with Mauritius and the Republic of the Congo (Congo-Brazzaville). “The UAE-Kenya Cepa will not only boost […]

Adnoc has bid for German polymer manufacturer Covestro but its offers €55 and €57 per share were rejected

Adnoc faces hurdles in completing ambitious European deals

Abu Dhabi state oil company Adnoc is facing challenges to a duo of major European deals it is trying to get over the finish line, according to media reports. Talks with Austrian energy group OMV have been put on hold to allow parties to navigate a series of disagreements, the Financial Times reported on Friday. […]

The 450 companies operating at Dubai Science Park include AstraZeneca, and the free zone plans to add 200,000 sq ft of lab and office space

Dubai Science Park reveals expansion plans

Dubai’s biotechnology free zone is adding 60 percent more offices, laboratories and warehouses over the next few years to cater for an influx of new companies, its senior vice-president told AGBI.  Dubai Science Park, part of Dubai-listed Tecom Group, is planning an expansion of 200,000 sq ft of additional storage and logistics facilities at the […]

A worker at a phosphate production plant in Metlaoui, Tunisia. Phosphate accounts for 15% of Tunisia's exports

Saudi Arabia loans $55m for Tunisian rail renewal

Saudi Arabia has signed a $55 million loan deal with Tunisia to finance the renewal of the North African country’s rail network.  The railway is used to transport phosphate, a sector that makes up around 4 percent of Tunisia’s GDP and 15 percent of the country’s exports. Tunisia plans to produce eight million tonnes by […]