DLD releases first-ever residential rental performance index for Dubai
The Dubai Land Department (DLD), in collaboration with Property Finder, has released the first edition of Dubai’s first-ever official Residential Rental Performance Index (RRPI). The January 2022 total monthly index was 0.938 and the index price was AED 51,101. The monthly index for apartments was 0.943 and the index price was AED 46,994, while the monthly index for villas/townhouses was 0.868 and the index price was AED 131,882.
The base year for the RPPI is 2013, the base month for the monthly index is January 2013 and the base quarter for the quarterly index is Q1 2013. According to the index, there were 51,452 leases recorded in January 2022, 52% of which were new and 48% of which were renewals, with 81% of which were annual and 19% of which were non-renewals.
The Dubai RRPI was released for the first time ever in a partnership between DLD and Property Finder. This insightful data contains a lot of very noteworthy information. In 2021, there were 564,036 leases for the year, breaking a 12-year record for property leases.
Annual leases were up 50.3 percent and non-year leases were up 75.5 percent in 2021 compared to 2020. Comparing the data over the past few years, it’s interesting to note that on average, annual leases have increased by about 7% over the past 5 years, but in 2021 they are up 56% over 2020. However, in 2020, annual leases are up 2% over 2019, and non-annual leases are up 115.2% over 2019. Data trumps opinion, and there are a lot of facts that need to be uncovered and released to the marketplace for full transparency.
In January 2022, we saw more than 51,452 leases in the Dubai market with an even distribution between new and renewed contracts. According to Property Finder, the most popular apartment leases were for 2-bedroom apartments, with 1-bedroom coming in second, and the most popular villa/townhouse leases were for 3-bedroom apartments, with 4-bedrooms coming in second.
In January 2022, the following neighborhoods had the most rental contracts according to Ejari Registrations: Jabal Ali First with 1,811 registrations, followed by Naif with 1,760 registrations. Al Karama (1,754), Al Warsan First (1,601) and Al Suq Al Kabir (1,457) were also among the top 5 districts in 2021. They were followed by Business Bay (1,317), Al Nahda Second (1,276), Barsha South (1,192), Marsa Dubai (1,174) and Nadd Hessa (1,098). Overall, the top 10 neighborhoods accounted for 28 percent of all lease transactions in January 2022.
According to Property Finder’s own data on searches for rental housing on the platform in 2021, the most sought-after neighborhood was Dubai Marina, which accounted for more than 11 percent of all searches. It was followed by Downtown Dubai, Business Bay, Jumeirah Village Circle and Jumeirah Lakes Towers. In terms of villas/townhouses, the Jumeirah, Dubai Hills Estate and Springs areas dominated property rental requests in 2021, accounting for about 18% of all inquiries. Arabian Ranches and Umm Suqeim followed, indicating high demand for properties on Umm Suqeim Road.
#Dubai @Land_Department (DLD), in cooperation with Property Finder, launches the 1st edition of Dubai’s first ever official Residential Rental Performance Index (RRPI).https://t.co/zg49pzZ9zl pic.twitter.com/u6NkkNLZl9— Dubai Media Office (@DXBMediaOffice) February 27, 2022
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