Dubai Land Department launches the first residential rental performance index

Dubai – WAM

The Dubai Land Department, in cooperation with Property Finder, has launched the first version of the first indicator of the performance of residential rents in Dubai .

The overall monthly residential rental performance index recorded 0.938 points at a price of 51,101 dirhams last January, after the monthly residential rental performance index for apartments recorded 0.943 points at 46,994 dirhams and 0.868 points for the monthly index of villas / townhouses at 131,882 dirhams.

According to the residential rental performance index – which is taken from 2013 as the base year, from January 2013 as the base month and from the first quarter of 2013 as the base quarter – the number of residential lease contracts in Dubai during January 2022 reached 51,452 contracts, 52% of which are new contracts and 48% are renewed contracts, while 81% of them were annual contracts and 19% were non-annual contracts.

In order to enhance the partnership between DLD and Property Finder, the residential rental performance index was launched for the first time in Dubai, which includes important and prominent data and information, as the number of lease contracts during the last year 2021 reached 564,036 contracts, which led to the smashing of the number The benchmark for 12 years in terms of the volume of real estate lease contracts.. annual rents increased by 50.3%, while non-annual leases increased by 75.5% during 2021 compared to 2020..

And when comparing the data over the past few years, it became clear that the average annual number of lease contracts increased by approximately 7% during the past five years.. while the increase in 2021 amounted to about 56 percent compared to 2020, while the year 2020 witnessed an increase in contracts The annual rent increased by 2% compared to 2019. Also, the non-annual lease contracts increased by 115.2% in the same period.

The results showed that the numbers and data achieved on the ground are superior to opinion polls and expectations, and there are many facts to disclose and publish in the market in order to achieve complete transparency..

With regard to January 2022, the number of lease contracts in Dubai reached more than 51,452 contracts, distributed between 52% of new contracts and 48% of renewed contracts. .

According to Property Finder data, the most popular rental contracts for apartments were for two-bedroom apartments, followed by one-bedroom apartments.. While the most popular rental contracts for villas / townhouses were for 3-bedroom villas, followed by villas from 4 bedrooms.

According to the “Ejari” program, specialized in registering and renewing lease contracts, Jebel Ali First region topped the list of regions with the highest registration of lease contracts in January 2022 with 1,811 contracts… followed by Naif region, “1,760 contracts”, then Al Karama “1,754 contracts”, followed by Warsan First region, “1,601 Contract” and Al Souq Al Kabeer “1,457 contracts”, which are the same areas that captured the top five ranks in 2021..

Then, the list included, in order, the Business Bay area (1,317 contracts), Al Nahda 2 (1,276 contracts), Al Barsha South (1,192 contracts), Dubai Marina (1,174 contracts) and a share of (1,098 contracts). In total, the first ten areas accounted for 28% of the total Lease transactions in January 2022.

According to demand data from the database of Property Finder, Dubai Marina topped the searches for rents for apartments on the platform in 2021, after accounting for more than 11% of all searches, followed by Dubai Downtown, Business Bay, Jumeirah Village Circle and Lake Towers Jumeirah.

As for villas / townhouses, searches were concentrated in 2021 in Jumeirah, Dubai Hills Estate and The Springs, which represents about 18% of the total searches, followed by Arabian Ranches and Umm Suqeim area, which shows the volume of demand for real estate on Umm Suqeim Street.

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