Dubai Announces First Official Residential Rental Performance Index
- DLD has created the first-ever Residential Rental Performance Index (RRPI) in Dubai.
- The index reveals 51,452 lease agreements made in the first month of 2022, indicating a solid rental market performance.
- The majority of the new leasing agreements were annual leases.
- According to the data, 2021 will conclude on a high note, with more than twice the gain in sales value compared to 2020.
Dubai Land Development (DLD) has come up with the emirate’s first Residential Rental Performance Index (RRPI). This rental performance index’s primary goal is to analyze and scrutinize the performance of the Dubai property market. The base year for calculating RRPI is 2013, January 2013 being the base month. The base quarter for this indicator is the first quarter of 2013.
According to this statistic, 51,452 lease agreements were signed in Dubai in January 2022. 52% of these were new, with the remaining 81% being yearly agreements. The majority of these tenancy agreements were for two-bedroom apartments. Renters continued to choose one-bedroom units. Renters chose 3-bedroom homes over villas and townhouses, according to the residential rental performance index.
The informative data also revealed that in the previous year, 546,036 lease agreements were registered in Dubai, shattering a 12-year record. Annual leases increased by 50.3 percent, while non-annual lease agreements increased by 75.5 percent in 2021 compared to 2020.
According to the RRPI, the most popular place with the most contract registrations is Jebel Ali (1,811). Naif, Al Karama, and Al Warsan First were next with 1,760, 1,601, and 1,457, respectively. Renters also preferred Business Bay (1,371), Barsha South (1,192), Al Nahda Second (1,276), and Marsa Dubai (1,174).
Aside from these outstanding rental market figures, the real estate industry experienced a more than twofold growth in the value of real estate transactions. In 2021, it had 621,241 sales transactions with a total value of AED 151.07 billion, up from AED 71.87 billion in 2020.
These astounding figures in the Dubai rental category demonstrate that the market is rapidly rebounding from the corona pandemic.