The Residential Rental Performance Index (RRPI), the first of its type in the emirate, has been unveiled by Dubai Land Development (DLD). The main goal of this rental performance index is to look at how the Dubai rental market is performing.
The base year for calculating RPPI is 2013, using January 2013 as the base month. The first quarter of 2013 is considered the index’s base quarter.
According to this index, 51,452 lease agreements were signed in Dubai in January 2022. 52 percent of these were brand new, and 81 percent were annual contracts. The majority of these tenancy agreements were for two-bedroom apartments. Renters continued to prefer one-bedroom units.
According to the residential rental performance index, tenants chose 3-bedroom houses over villas and townhouses.
In addition, according to the data, 546,036 lease agreements were registered in Dubai last year, breaking a 12-year record. Annual leasing agreements increased by 50.3 percent, while non-annual lease agreements increased by 75.5 percent in 2021 over 2020.
According to the RRPI, Jebel Ali continues to be the most preferred place for contract registrations (1,811). Naif, Al Karama, and Al Warsan First came in second, third, and fourth, with 1,760, 1,601, and 1,457 points, respectively. Renters flocked to Business Bay (1,371), Barsha South (1,192), Al Nahda Second (1,276), and Marsa Dubai (1,174).
Aside from these extraordinary figures in the rental market, the value of real estate transactions increased by more than twice as much in the real estate industry. 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 from the Dubai rental market reveal that the market is quickly recovering from the corona pandemic.