Dubai's rental rates at an all-time high: Are mortgages a better option?

Dubai's rental rates at an all-time high: Are mortgages a better option?

Thursday 16 February 2023Wed 16 Feb
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Dubai's rental rates at an all-time high: Are mortgages a better option?

It comes as no surprise that the market has seen a huge growth post-pandemic in 2022. Not just all, rental rates have surged to a record rate of 28.5% for both apartments and villas.

Currently, Palm Jumeirah boasts the highest rental rates for both apartments and villas, with the average annual asking rent coming in at AED 200,000 and leading up to AED 1 million.

The iconic man-made island that recently welcomed the sensational Atlantis the Royal, still holds the reign as the most sought-after community in Dubai for rentals. It’s also the only location where the average price has topped AED 1 million!

The residential market in Dubai began the year with strong momentum, as total transaction volumes saw a 69.2% increase in January 2023 compared to the previous year as the city welcomed a new influx of residents.

Renting a villa in Dubai remains considerably more expensive than an apartment, with average prices being almost three times as much. Hence, many residents are now seeking mortgages that can reduce the rent they’re paying to allow themselves to own a home.

If you’re looking to call Dubai your home, or if you already do. We have an expert team of mortgage advisors who can help you find the best possible rate on the market.

Get in touch with our Head of Mortgage Services; Stuart Roe and get started on your mortgage journey!

And if you’re a first-time mortgager, don’t miss out on our mortgage guide for first-time buyers!

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