Tenants in Dubai are concerned over uncontrollable rent increases across several popular locations during the first quarter (Q1) of 2023. Many of them are paying over 5% extra on their renewed contracts in Dubai Marina and Jumeirah Lake Towers (JLT).
Some of them were hopeful that the rising rents would slow down this year after skyrocketing in 2022 but this will not be the case this year.
Economical locations like Discovery Gardens, and International City are witnessing rental surges of up to 4%, as per Asteco, a property company.
Palm Jumeirah also recorded a massive hike in rents last year, with the highest rise of 8% in Q4 2022 and an overall increase of 32% on a year-on-year (YoY) basis, making it the biggest one among major locations in Dubai.
Meanwhile, Dubai Marina, JBR, and Downtown saw an increase of 28%, 28%, and 27%, respectively.
A 2-bed apartment in Dubai Marina is now available for approximately AED 90,000-185,000 per year, while in JBR, the rent for the same sized apartment is about AED 110,000-170,000 annually.
Asteco reported that the gap between tenants and landlords is widening, especially after a period of low rents, landlords are now seeking to gain profits from a favorable market situation.
Source: Pro Pakistani