How much to spend on renting a home in the UAE is a question many residents ask themselves each year.
Well, how about almost Dh4 million ($1m)?
A new record has been set in Dubai for the most expensive rental in the city to date – a whopping Dh3.8m.
LuxuryProperty.com said the deal was sealed by its head of luxury sales and luxury leasing, Riccardo Scala, and was for a nine-bedroom villa on Palm Jumeirah.
The residence, which features a gym, sauna, pool and private beach, is being operated by Luxury Explorers’ Collection, a high-end provider of concierge and property management services. Tenant details remain confidential.
“Since Covid-19 gripped the world some 18 months ago, we have seen a dramatic rise in the demand for super-prime properties,” said Scala.
“Buyers and tenants moving to Dubai are not just looking for a home that is aesthetically pleasing, but one that provides privacy and security for their families.
"Areas like the Palm Jumeirah tick all of these boxes for our clients and transactions of this nature show the strength of the market in 2021, for both sales and rentals.”
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Dubai ranks fourth globally for spending the highest percentage of monthly expenditure on rent, according to data from cost-of-living database Numbeo.
People in the Emirates spend 39.85 per cent of their monthly outgoings on rent. A three-bedroom property in the UAE costs Dh7,054 on average to rent per month.
Dubai rents have started to rise in some areas of the city after heavy falls during the initial months of the coronavirus pandemic.
In the first quarter of 2021, average apartment and villa rental rates in Dubai grew by 1 per cent and 4 per cent respectively, according to Asteco.
"Villa developments (mature and emerging) in particular recorded a surge in demand and consequently a rise in rental and occupancy rates as a result of changing working and living habits," it wrote in its Q1 report.
Meanwhile, Dubai's prime residential market recorded a 43.8 per cent surge in sales volume in the second quarter of 2021, compared with the previous quarter, according to Luxhabitat Sotheby’s International Realty.
“The post-Covid resilience of the UAE’s economy is attracting immense wealth from across the world and, especially, from Europe, England and the Americas,” said Chris Whitehead, managing partner of Luxhabitat Sotheby’s International Realty.
Three villas, all on Palm Jumeirah, have sold for more than Dh100m this year, with the most expensive being a XXII Carat (Club Villas) property for Dh119.5m.