Industry Experts say Rents will continue to rise in 2022

Dubai's real estate market is recording a rise in rental prices as it gradually recovers from the effects of the COVID-19 pandemic. Analysts predict that this trend will continue throughout 2022 and that villas will be increasingly in demand among tenants. According to Haider Tuaim, Head of Real Estate Research at Valustrat, rents in Dubai have fallen 40% since late 2015, where the lowest rate was reached in 2020. But government measures to combat the pandemic have been followed by record sales transactions (up 18.9% for 2021), especially from international investors who, in fear of a new wave of COVID-19, have decided to live in the UAE. As Tuaima notes, thanks to the increased demand for villas, rents rose 26.8% to 2018 levels, while apartment rents increased by 14.3%. But some experts are estimating that this jump in rental prices is only temporary, where the main key factor for the rise is the ongoing Expo 2020 exhibition in the emirate.

It is worth noting that all rental increases will be conducted under the rules of the Dubai Real Estate Regulatory Authority, Department of Land Resources (RERA) and the landlord will not be able to increase the rental price without notifying its tenants in writing no later than 90 days in advance.

In addition, the UAE ranked first in a new global real estate index launched on February 8, where the country's reputation as a safe and secure environment for living and doing business was a key factor. The#nbsp;Emirates were followed by destinations such as Spain, Montenegro, Turkey and Portugal. According to the Best Real Estate Investment Migration Index by Henley & Partners in partnership with Deep Knowledge Analytics, the Emirates deservedly received a high score of 82 for potential rental income, where the price per square meter is much lower than other major international centers on the planet. Real estate investment in this case is linked to the state's reputation, safe living environment, attractive employment conditions, its strong economy and progressive prospects in industries such as renewable energy. Additionally, various government initiatives to improve living conditions and support residency programmes through investments, including expanding incentives to purchase real estate also contributed to the positive outcome.

Considering the investment destinations in Dubai, it is worth mentioning some notable projects in the Emaar Beachfront area such as South Beach, which offers the sale of premium hotel apartments with 1-3 bedrooms, Grand Bleu Tower, which boasts a collection of apartments with exclusive interiors from the famous Lebanese couturier Elie Saab, and Beach Isle, where spacious family villas with 3-4 bedrooms successfully combine an advantageous location, sophistication and functionality. These projects are in the final stages of construction and include convenient payment plans. Under the current market conditions, upon completion of construction, you can start renting out your property in Emaar Beachfront and receive a guaranteed profit of 8-9% per annum, or resell your asset at a higher price over time.

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