The Dubai Land Department (DLD), in conjunction with Property Finder, has launched the first edition of the emirate’s first-ever official Residential Rental Performance Index (RRPI).
In January 2022, the overall monthly index recorded 0.938 and an index price of 51,101 Dhs. The monthly apartments index recorded 0.943 and an index price of Dhs 46,994, while the monthly villas/townhouses index recorded 0.868 and an index price of Dhs 131,882.
The base year for the RPPI is 2013 and the base month for the monthly index is January 2013, the base quarter for the quarterly index being the first quarter of 2013, according to Dubai Media Office.
According to the index, 51,452 leases were registered in January 2022, of which 52% were new contracts and 48% were renewal contracts, while 81% of them were annual contracts and 19% were non-annual contracts. , according to the Dubai Media Office.
In 2021, there were 564,036 leases throughout the year, breaking a 12-year record in terms of volume of real estate leases.
Annual leases increased by 50.3% and non-annual leases increased by 75.5% in 2021 compared to 2020.
On average, the annual number of leases has increased by around 7% over the past five years, but in 2021 it increased by 56% compared to 2020.
However, in 2020, annual leases increased by 2% compared to 2019 and non-annual leases increased by 115.2%.
As of January 2022, there were over 51,452 rental contracts in the Dubai market with an equal split between new contracts and renewals.
According to Property Finder data, the most popular apartment leases were for two-bedroom apartments with one bedroom just behind and the most popular villa/townhouse leases were for three bedrooms with four bedrooms second. position.
#Dubai @Land_Department (DLD), in cooperation with Property Finder, launches the 1st edition of Dubai’s first-ever official Residential Rental Performance Index (RRPI). https://t.co/zg49pzZ9zl pic.twitter.com/u6NkkNLZl9
— Dubai Media Office (@DXBMediaOffice) February 27, 2022
Top domains by ejari registration
The top domains that registered the most rental contracts in January 2022 according to Ejari Registrations were Jabal Ali First with 1,811 registrations, followed by Naif with 1,760.
Al Karama (1,754), Al Warsan First (1,601) and Al Suq Al Kabeer (1,457) were also among the top five areas in 2021. Next are Business Bay (1,317), Al Nahda Second (1,276), Barsha South (1,192), Marsa Dubai (1,174) and Nadd Hessa (1,098). In total, the top 10 areas accounted for 28% of all rental transactions in January 2022.
Top areas by residential demand
According to Property Finder’s exclusive residential search data for rental searches on the platform in 2021, Dubai Marina was the most searched area, accounting for over 11% of all searches. This is followed by Downtown Dubai, Business Bay, Jumeirah Village Circle and Jumeirah Lakes Towers.
For villa/townhouse searches in 2021 for rental properties, Jumeirah, Dubai Hills Estate and The Springs topped the list, accounting for around 18% of all searches. This was followed by Arabian Ranches and Umm Suqeim showing the extent of demand for properties on Umm Suqeim Road.
Overall, DLD noted that a total of 35 real estate projects worth more than Dhs 11 billion were completed in 2021 and 319 projects were underway as of early last month. Additionally, 602,714 Ejari contracts were registered in 2021, of which 315,222 were new contracts.
Read: Dubai records real estate transactions worth 300 billion Dhs in 2021