The Dubai Land Department (DLD) recently collaborated with Property Finder to launch the Emirate’s first-ever Residential Rental Performance Index (RRPI). The index is released in a bid to increase the level of transparency within the residential rental sub-sector of the real estate market, by providing valuable and insightful data. 

According to the index, Dubai’s residential rental properties sector has rallied against the pressures inflicted by the COVID-19 pandemic. In fact, the sector broke a 12-year record in terms of volume, with the index logging over 564,000 leases throughout 2021. Additionally, annual and non-annual leases in Dubai increased by 50 and 75 percent, year-over-year, respectively, in 2021. The key factors that played a role in this astounding growth of the emirate’s rental ecosystem are: The UAE’s successful navigation of the pandemic, its high inoculation rates, and the hosting of Expo 2020 despite disruptions.  

Demand and supply dynamics of the market

The push for transparency comes at a time when, across the globe, property markets are subject to price volatility. The index will also shed light on rental properties’ demand and supply dynamics within the market and ensure that people in the city have pertinent information on affordable and high-quality housing options at all times. This will continue to place Dubai above the fold as far as incentives for global investors are concerned. 

Residential Rental Performance Index and key insights

The highest number of rental contracts were registered in Jebel Ali, followed by Naif, Al Karama, Al Warsan First, and Al Suq Al Kabeer. According to the index, the top 10 areas accounted for a whopping 28 percent of all rental transactions in January 2022. 

As per the Property Finder’s residential search data, Dubai Marina accounted for 11 percent of all searches for rental properties in Dubai. Another key trend that the index highlighted was the interest in two-bedroom apartments in the multi-family housing segment and three-bedroom homes in the single-family segment. The full RRPI can be accessed here.

Implications of the index launch

The launch of RRPI will give renters and customers a common reference point and the highest level of transparency on the current rental rates in various localities of Dubai. By design, Residential Rental Property Index is highly customer-centric and will safeguard the interest of renters, who will now feel confident about choosing properties as they can verify the listed price of a property against the index.

This is the first time that an index of this calibre has been released by the government. The move will help keep rents in check and offer a common reference point for customers interested in moving to Dubai and making the Emirate their permanent home or enjoying longer vacation stays in the city. The index will also give visitors and those interested in settling in the UAE an idea about the average costs of living in the Emirate. 

Dubai’s consistent efforts to become one of the happiest cities in the world are substantiated in launches like RRPI. The index is a decisive step to streamline the renting of residential properties in the Emirate. Also, the index will give key stakeholders much-needed insights into the dynamics of the market and allow them to introduce measures to address challenges as they arise. But most importantly, renters can rest assured utilize the new service to ensure that they get their money’s worth. 

https://dubailand.gov.ae/en/open-data/research/residential-rental-performance-index-january-2022/#/