Dubai’s residential rental market continued its upward trend in July, with a 3.4% increase in leasing transactions and rising average rents across key communities, according to the latest market data from Betterhomes.
Tenant demand rises
A total of 39,251 rental contracts were registered in July, with new leases making up 40% of all transactions—up from 37% in June. The figures reflect ongoing demand from new tenants entering the market.
Al Khail Heights posted the highest rental growth for apartments, with average annual rents climbing 1.5% to Dhs 67,500. Jumeirah recorded the strongest villa rental growth, up 4.2% month-on-month to Dhs 498,000.
Across Dubai, average rental prices stood at Dhs 72,000 for apartments, Dhs 172,000 for townhouses, and Dhs 255,000 for villas.
“Dubai’s rental market is powering ahead, with more tenants willing to pay for the right property. July’s jump in new contracts shows fresh demand is still flowing into the city,” said Rupet Simmonds, Director of Leasing at Betterhomes.
Betterhomes also noted a 10% increase in tenant leads during July. The company’s leasing transactions reflected higher-than-market averages, with apartments renting at Dhs 141,000, townhouses at Dhs 190,000, and villas at Dhs 368,000.
The most active leasing areas for villas were Arabian Ranches 3, Dubai Hills Estate, and Arabian Ranches 2, while Dubai Marina, Downtown Dubai, and Business Bay led the apartment segment.
Sales activity strengthens
Dubai’s residential sales market also posted gains in July. A total of 18,816 transactions were recorded—a 20.5% increase from June—amounting to a value of Dhs 51.3 billion, up 10.6% month-on-month.
The average price per square foot reached Dhs 1,893, reflecting a 3.3% rise from the previous month. Off-plan sales accounted for 65% of all transactions, compared to 62% in June, highlighting continued buyer interest in under-construction properties.
“The continued strength of Dubai’s off-plan sector shows enduring confidence in the city’s long-term growth,” said Christopher Cina, Director of Sales at Betterhomes.
“We’re seeing demand from both seasoned investors and first-time buyers eager to secure properties before completion,” he added.
Betterhomes recorded a 4% monthly increase in buyer leads, with sales split almost evenly between cash (48%) and mortgage (52%) transactions. Investors made up 62% of buyers, while end-users accounted for the remaining 38%.
Market-wide, average sale prices stood at Dhs 1.99 million for apartments, Dhs 3.25 million for townhouses, and Dhs 9.7 million for villas. Within Betterhomes’ portfolio, average apartment prices were higher at Dhs 2.33 million, while villas averaged Dhs 6.1 million.
Top-performing sales communities included Damac Hills 2, Dubai Land, and Dubai Investments Park for villas, and Dubai Marina, Motor City, and Dubai Land for apartments.
The sustained rise in both leasing and sales activity points to continued confidence in Dubai’s property market. Betterhomes expects the current momentum to carry forward, supported by strong investor sentiment and steady demand from new residents.
tanvir@dubainewsweek.com
