Arab News, Wed, Apr 03, 2024 | Ramadan 24, 1445
Rental prices for villas in Dubai surge 16.2%: CBUAE
Emirates:
Dubai’s real estate market witnessed strong growth in 2023, with rental prices
for villas surging 16.2 percent year-on-year in the fourth quarter, official
data showed.
According to the latest report released by the
Central Bank of the UAE, median leasing rate prices soared by 10.2 percent in
the final three months of last year compared to the same period in 2022.
CBUAE added that the rental yield in Dubai also
increased to 4.4 percent at the end of 2023 from 3.4 percent at the end of the
preceding year.
Rental yield is the percentage of the property
value received over a year through client earnings.
The report noted that residential real estate
sales transactions in Dubai increased by 20.7 percent year-on-year during the
last quarter of 2023.
The data revealed that lease rates in Abu Dhabi
posted mild growth rates in the fourth quarter.
According to the central bank, the median rental
price for villas and apartments in Abu Dhabi marginally rose by 2.3 percent and
1.8 percent respectively in the fourth quarter of 2023 compared to the same
period of the previous year.
Residential real estate sale transactions in Abu
Dhabi also increased by 33.9 percent in the fourth quarter, driven by a 175.5
percent surge in apartment sales.
Strong growth in the tourism sector
The report added that the total count of hotel
guests in Abu Dhabi surged to 4.1 million in the first 10 months of 2023,
representing a rise of 28 percent compared to the same period in 2022.
The average revenue per available room in Abu
Dhabi also witnessed a 24 percent year-on-year increase, reaching 293 dirhams
($78.12).
Data from the 12 months of 2023 indicated that
Dubai maintained its status as a leading global tourism destination.
Hotel occupancy rates in Dubai rose to 77 percent,
a 4 percentage points increase from the corresponding period in 2022 and 2
percentage units higher than the pre-COVID-19 figures of 2019.
CBUAE added that the influx of international
visitors to Dubai reached over 17 million in 2023, representing a 19.4 percent
rise compared to 2022.
Transportation rebounds
According to the report, Abu Dhabi Airports
experienced a substantial increase in passenger traffic, reaching almost 23
million commuters in 2023, up 44.5 percent year-on-year.
Similarly, Dubai’s airports welcomed 87 million
visitors last year, a 31.7 percent growth compared to 2022.