• The first-ever Residential Rental Performance Index (RRPI) launched in Dubai by DLD.
  • The index shows 51,452 lease agreements signed in the first month of 2022, signalling a strong performance in the rental market.
  • Annual agreements formed the major chunk of the total new lease agreements.
  • The data shows 2021 ending on a strong note with more than double growth in terms of sales value as compared to 2020.

Dubai Land Development (DLD) has unveiled the Residential Rental Performance Index (RRPI), the first of its kind in the emirate. The main objective of this rental performance index is to analyse the performance of the Dubai rental market.

The base year to calculate RPPI is 2013, with the base month set as January 2013. The first quarter considered as the base quarter for this index is Q1, 2013.

As per this index, Dubai recorded 51,452 lease agreements signed in January 2022. Out of these, 52 per cent were new, and 81 per cent were annual agreements. Among these tenancy contracts, the majority were signed for two-bedroom flats. 1-bedroom apartments also remained popular with renters. For villas and townhouses, renters preferred 3-bedroom houses, as shown by the residential rental performance index.

The insightful data also showed that 546,036 lease agreements were recorded in Dubai during the last year, breaking the 12-year record. With this, annual leases witnessed an increase of 50.3 per cent, while non-annual lease agreements rose by 75.5 per cent in 2021 in comparison to 2020.

According to the RRPI, Jebel Ali remained the most popular area with the highest number of contract registrations (1,811). It was followed by Naif, Al Karama, and Al Warsan First with 1,760, 1,601, and 1,457, respectively. Business Bay (1,371), Barsha South (1,192), Al Nahda Second (1,276), and Marsa Dubai (1,174) also remained popular among renters.

Besides these remarkable numbers in the rental market, the real estate sector saw more than double the increase in the value of real estate transactions. It registered 621,241 sales transactions with a collective value of AED 151.07 billion in 2021 in contrast to AED 71.87 billion in 2020.

These remarkable numbers recorded in the Dubai rental segment show that the market is recovering at a rapid pace from the corona pandemic.

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