Dubai villa rents up 16.2%, says CBUAE

According to official figures, Dubai’s housing industry demonstrated tremendous growth in 2023, with villa rental rates increasing by 16.2% in the year’s final quarter.

The Central Bank of the UAE‘s recent findings showed a 10.2% rise in apartment rents during 2023’s Q4, when compared to the same timeframe in 2022.

The bank also observed an uplift in Dubai’s rental yields, moving from 3.4% at the end of 2022 to 4.4% by 2023’s close. This metric is the annual income from rentals as a percentage of the property’s value.

CBUAE also noted that the number of residential real estate sales in Dubai grew by 20.7% in the fourth quarter year-on-year.

In Abu Dhabi, rental growth was more subdued in the same period, with villas and apartments seeing increases of 2.3% and 1.8%, respectively. Residential sales in Abu Dhabi rose significantly, by 33.9% in the last quarter, supported by a 175.5% jump in apartment sales.

Tourism's Impact on the Economy

The bank’s report also cited a strong growth in Abu Dhabi tourism, with hotel guest numbers reaching 4.1 million in the first 10 months of 2023 – a 28% year-on-year gain. This jump increased the average hotel room income to AED 293 ($78.12), up 24% from the previous year.

Dubai continued to hold its position as a key global tourist spot, with hotel occupancy climbing to 77% in 2023. This figure surpassed the previous years by 4% and exceeded pre-pandemic levels by 2%. Dubai attracted over 17 million international visitors in 2023, marking a 19.4% increase from 2022.

Revival of Transportation

The transportation sector also rebounded strongly, with Abu Dhabi Airports seeing a 44.5% increase in passenger numbers, reaching nearly 23 million in 2023. Dubai’s airports experienced significant growth, with a 31.7% increase in visitor numbers, totaling 87 million last year.

Original article reference: Arab News.

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