Dubai's real estate sector has been growing steadily over the past two years, attracting investors and driving up prices. According to the Dubai Land Department (DLD), average property rents in Dubai have increased by 22% in just the first half of the year, from January 2023 to July 2023. This is the highest rise since February 2017.
More than 325K leases were registered in the first six months of 2023, 43% higher than the values of the same period in 2019. Renters are reluctant to move to new housing due to high prices, especially in the emirate's upmarket neighbourhoods. The Real Estate Regulatory Agency (RERA) has a rule that landlords cannot increase rental prices by more than 20% per year. This helps to stabilise the situation with price increases and prevents people from being forced to look for a new place due to price increases.