More tenants in Dubai are renewing their residential leases as rents continue to rise, with a 14 per cent annual increase in the number of renewals in the second quarter of this year, according to a new report.
City-wide rents rose for the 14th consecutive quarter, property consultancy Cushman and Wakefield Core found.
Apartment rents are up by 22 per cent compared to the same period last year, its report said, and villa rents rose by 13 per cent year-on-year.
“Household incomes are not keeping pace with rising rents, which is further contracting disposable incomes,” Prathyusha Gurrapu, head of research and consulting at Cushman and Wakefield Core, said.
“Similar to the trends seen in the sales market, rents in the mid-market apartment districts, such as Discovery Gardens, Dubai Sports City and Dubailand, saw the steepest rise, whereas prime districts saw lower levels of increase.”
This week, Abu Dhabi launched the emirate’s first residential rental index, aimed at providing indicative rental values for tenants and landlords in different areas of the capital. The Rental Index is available online at the Abu Dhabi Real Estate Centre’s website www.adrec.gov.ae.
Rents continue to rise in Abu Dhabi. Apartment rents increased by 2 per cent annually in Abu Dhabi during the second quarter, while villa rents jumped 5 per cent, according to the latest report from Asteco.
Dubai's Real Estate Regulatory Authority updated its rent calculator earlier this year. The Rera calculator, which was recalibrated on March 1 to become more representative of open-market pricing, is revised periodically.
Residential sales prices in Dubai continued their upward trajectory for the 16th consecutive quarter with a 21 per cent year-on-year increase, according to the Cushman and Wakefield Core report. However, it said, prime districts saw a relative moderation in sales price increases, while mainstream and affordable districts are witnessing steep increases that are impacting their affordability.
The study found that Dubai remained a strong global ultra-prime market, with more than 305 residential properties sold for above Dh20 million in the second quarter, a 12 per cent annual increase. However, there has been a marked slowdown in off-plan transactions over the last two quarters.
“This is mainly due to the lower off-plan inventory available in the market for these ticket sizes. That said, secondary market ultra-prime transactions have retained their steady activity levels with 135 transactions,” Ms Gurrapu said.
During the second quarter, only 5,391 units were delivered compared to more than 8,350 in the preceding quarter, the report said.
A total of 24,300 residential units are anticipated over the remainder of the year, bringing the annual total to nearly 39,000 units, which is similar to 2023 and in line with market demand.
“Growing from a high base, new project launch volumes continue to see record numbers with a 42 per cent annual increase, as demand and absorption remain buoyant,” Ms Gurrapu said.
“We have also seen developers with large landbanks initiating projects and smaller private developers aggressively acquiring land, which continues to be a challenge to source.”
Until the end of 2021, the differential between off-plan transactions and secondary market transactions was limited. However, over the last two to three years, off-plan transactions have sharply increased, underpinned by the rise in new project launches.
Ms Gurrapu said that while secondary market transactions recorded a moderate growth of 5 per cent, off-plan transactions saw a substantial spike of 61 per cent.
In the second quarter, off-plan transactions accounted for more than double the number of secondary market transactions, indicating that the off-plan market has a higher share of investors compared to end users, she added.
“Primary off-plan sales prices [inventory sold by developers] are higher than secondary off-plan prices [resales by individuals] across most Dubai districts and off-plan projects,” the report said.
“Although the percentage difference is still in single digits, it suggests that sellers are struggling to match original prices and selling slightly below market value to exit.”
Other indicators of market stabilisation include a higher number of sales listings with no change in prices in the first half of 2024, while a much lower number of listings saw prices increase compared to the same period, according to Cushman and Wakefield Core.
Smart words at Make Smart Cool
Make Smart Cool is not your usual festival. Dubbed “edutainment” by organisers Najahi Events, Make Smart Cool aims to inspire its youthful target audience through a mix of interactive presentation by social media influencers and a concert finale featuring Example with DJ Wire. Here are some of the speakers sharing their inspiration and experiences on the night.
Prince Ea
With his social media videos accumulating more half a billion views, the American motivational speaker is hot on the college circuit in the US, with talks that focus on the many ways to generate passion and motivation when it comes to learning.
Khalid Al Ameri
The Emirati columnist and presenter is much loved by local youth, with writings and presentations about education, entrepreneurship and family balance. His lectures on career and personal development are sought after by the education and business sector.
Ben Ouattara
Born to an Ivorian father and German mother, the Dubai-based fitness instructor and motivational speaker is all about conquering fears and insecurities. His talk focuses on the need to gain emotional and physical fitness when facing life’s challenges. As well managing his film production company, Ouattara is one of the official ambassadors of Dubai Expo2020.
ETFs explained
Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.
ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.
There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
FIGHT%20CARD
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INDIA%20SQUAD
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The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Profile box
Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
