Riyadh – Mubasher: Dubai, along with Miami and Moscow, witnessed the highest levels of rental growth worldwide during the first half (H1) of 2021, a report by Savills unveiled on Tuesday.
The UAE city was among 30 towns in the Savills World Cities Index that saw high rental values and yields reported for Prime Residential properties across the globe.
Dubai rental prices have been on a steady decrease over the last six years, yet 2020 witnessed the worst plunge of 12% in rents due to travel restrictions as well as economic decline caused by the pandemic.
Dubai market has been reaching a turning point, as prime rental prices rose by 5% in H1-21, driven by a 20% increase in rents across certain villa communities.
There was an average increase of 0.5% across the 30 cities, and a 1.8% decline over 2020 due to global restrictions on travel thereby reducing global demand.
Associate Director Research at Savills Middle East, Swapnil Pillai, said: “Rental markets are likely to remain stable for the rest of 2021. Travel restrictions remain in place between key source markets, causing rental prices to recover more slowly than capital values.”
Pillai added: “However, in the long run, prices are likely to gradually appreciate as economic activity gathers momentum and more job opportunities are created. The further easing up of travel restrictions will be a welcome catalyst for growth.”
