Dubai rental sector on the rise

Residential rentals in Dubai fell just 0.4% year-on-year.

According to Knight Frank consultancy, Dubai rental sector is now much more stable than the sales sector, where prices declined the most over the last year.

However, Prime Rental Index from Knight Frank noted that premium residential rentals in Dubai sometimes even show an upward trend, although 0.2% annual rate of growth is the minimum since the first quarter of 2010.

At the same time Global House Price Index from Knight Frank has rated Dubai 56th of 56 cities in terms of sales house prices growth, for as of the date the annual report was published, the decline in prices in this sector was 12.2%. As for the rental sector, there Dubai was ranked 11th out of the 18 markets with the fastest rentals growth. Cape Town topped the rating with the annual rentals increase of 10.4%.

The similar trend is observed across all the sectors of the Dubai real estate market. In the sector of industrial property, according to Knight Frank, the average rent increased by 4% in the last six months. And in the future, the need for industrial, commercial and office real estate rents will grow, William Neill, Partner at Knight Frank UAE, emphasized, saying: "Over 4 billion people live within 8 hours flight from Dubai covering major markets in Africa and Asia. Dubai's geographical location, supply chain (ports and airports), legislation and infrastructure make it an ideal supply and re-distribution gateway."

"We are very optimistic about the Dubai real estate which continues to show outstanding growth rates year-on-year. This demonstrates the market's ability to attract buyers and foreign investors based on its stability and high ROI. This is the perfect time for international investors to invest in Dubai's real estate," Hafeez Abdulla, Chairman of 'The H Holding Enterprise' has added.

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