Apartment rentals grew an average of 28.8 per cent while the average cost of renting a villa rose 26.1 per cent…

The cost of renting a villa or apartment in Dubai rose by a record rate in 2022, according to a new real estate report.

As per real estate services and investment company CBRE, the average annual rent cost in Dubai grew by 28.5 per cent in 2023, marking the highest increase in the city on record. This is split between an average increase of 28.8 per cent for apartments, while the cost of renting a villa in Dubai rose by an average of 26.1 per cent. In the twelve months to January 2023, annual apartment rents reach an average of Dh98,307, while the average cost of renting a villa for the year reached Dh290,242.

The report also showed growth in the cost of buying an apartment or villa in Dubai rose on average by 10.6 per cent. In the same 12-month period, the average cost of buying an apartment increased by 10.3 per cent, while the average price of buying a villa increased by 12.9 per cent.

The cheapest and most expensive places to buy and sell

For those looking to buy at the top end of the market, the priciest areas to buy per square foot are the areas you’d probably expect. For apartment sales, Jumeirah is most expensive, followed by Palm Jumeirah, Downtown, Old Dubai and Dubai Hills. For villa sales, you’ll expect to pay most per square foot in Palm Jumeirah, then Emirates Hills, Jumeirah, District One then Mohammed Bin Rashid City.

The most affordable places to buy an apartment include International City, Liwan, Discovery Gardens, Remraam and Living Legends. Interested villa buyers looking for the cheapest deal should consider areas like Damac Hills 2, JVC, Green Community, Town Square and Falconcity of Wonders.

For renters, the most expensive areas to rent an apartment are Palm Jumeirah, Downtown, Old Dubai, Jumeirah and Dubai Marina. At the lower end, the cheapest places to rent an apartment in Dubai according to the report are International City, Liwan, Deira, Dubailand and Living Legends.

Those in the market for a villa rental can expect to pay the highest prices in areas including Palm Jumeirah, The Lakes, Jumeirah Golf Estates, Emirates Hills and Victory Heights.Those looking for the cheapest place to rent a villa should consider areas like JVC, Living Legends, Falconcity of Wonders, Green Community and Deira.

Image: Sajimon Sahadevan/ Unsplash