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Dubai Residential Rents Surge in Q3 2023, Averaging 27.2%

Dubai's residential rentals have increased significantly, with an annual increase of 27.2% in the third quarter of 2023.

Dubai’s residential rents witnessed a significant surge, with an annual growth of 27.2% in the third quarter of 2023 compared to the same period in the previous year. 

Villa rentals, in particular, saw a substantial increase, rising by 38.7% annually.

Average Rental Rates by Property Type:

The average annual rents for different property types are as follows:

  • Three-bedroom villas: Dh312,000
  • Four-bedroom villas: Dh383,000
  • Five-bedroom villas: Dh492,000
  • Studio apartments: Dh51,000
  • One-bedroom apartments: Dh75,000
  • Two-bedroom apartments: Dh111,000
  • Three-bedroom apartments: Dh170,000

Dubai’s residential occupancy rate was estimated at 88.9% during the third quarter, reflecting strong demand in the property market.

Dubai Real Estate Market Growth:

The Dubai real estate market showed remarkable growth in Q3 2023, with a 22% increase in transactions compared to the same period in 2022. 

The total worth of these transactions surged by 40% year-on-year, reaching Dh97.55 billion.

Dubai’s Commercial Real Estate Performance:

Dubai’s office space market also performed well in Q3 2023, with a 25.5% annual increase in capital gains. 

Several central business districts in the city witnessed double-digit annual growth, reinforcing Dubai’s status as a vibrant commercial hub.

Increased Demand for Office Space:

Office transactions grew 9.0% year-on-year in Q3 2023, indicating sustained demand in the office space segment. 

The report also highlights valuation expansions in Grade A and Grade B office spaces.

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