Emirates 24/7 reported that the June increase took the year-on-year increase to 23.7%. The apartment index saw a 0.13% monthly increase and a 26.6% annual hike. Meanwhile, the villa rental index saw a monthly increase of 0.30% and 10.7% yearly.
Though Dubai is expected to see a supply of 90,000 new units by 2018, as estimated by HSBC Global Research, the bank believes the market will absorb – fairly easily — the new supply even if the population grows less than 5% per year.
“We believe that we have not yet reached the peak of the cycle, and that the market can continue to absorb the expected supply additions over the next few years, even at a population growth rate below 5 per cent,” the global bank said in April.
A CBRE report said in July that residential rentals will continue to see rise throughout 2014 in Dubai, leading to cost conscious tenants to relocate to Northern Emirates.