Renting real estate in the Emirates receives great interest from Arab and foreign investors. Also, customers wishing to rent a specific property within the Emirati lands, whether it is a residential or commercial property.
- With the uniqueness of Dubai, Abu Dhabi, and the rest of the Emirates in providing different types of properties for rent, investment opportunities in the real estate market have increased. Every investor aspires to profit from his property and increase his investment returns continuously and for the long term.
Perhaps you would like to know more about renting real estate in the Emirates, especially if you are a property owner or want to rent, so follow the lines of this article with us and discover the most important details about the reality of rented real estate in Dubai and Abu Dhabi, the leasing mechanism, and the most important laws related to this matter.
Real estate rental market in the UAE
Recent real estate reports on the developments of the UAE rental real estate market showed that residential real estate rental prices in the Emirates – Dubai increased by 22 % compared to the last year 2022. They also showed an increase in average rents for residential apartments by 21.9 % and villas by 22.6 %.
- Although rental price growth decreased from 22.8 % in June 2023, demand is still increasing in the rental market and growing.
In addition, the total number of annual real estate rental registrations from the beginning of the year 2023 until July 2023 increased by 8.8 %. It is also expected that rental prices will continue to rise, especially in Dubai, while maintaining the demand rate.
The importance of renting real estate in increasing the return on investment
Renting real estate in the Emirates achieves positive results in terms of increasing investment returns, and this is demonstrated through the following:
- Obtaining a successively increasing monthly or annual return by renting residential and commercial properties (apartments, villas, houses, offices, stores, warehouses).
- Achieving profitable investment returns by renting factories, laboratories, and industrial workshops to companies for the purpose of storage and production.
- High profits can be obtained by renting large properties such as residential complexes and hotels, but their investment process is somewhat difficult and requires strong capital.
The most important real estate rental laws in the Emirates
Renting real estate in the Emirates is subject to the most important laws regulating the landlord-tenant relationship, which are as follows:
- Law No. (26) of 2007: regulates the relationship between landlords (property owners) and tenants in the Emirates.
- Law No. (33) of 2008: It is an amending decree from Law No. (26) of 2007, with the aim of amending some of its articles and regulating the rental relationship between the landlord and the tenant.
- Decree No. (26) of 2013: is concerned with including articles to clarify the mechanism for dealing with various problems and obstacles associated with rental operations and how to solve them to the satisfaction of both parties.
- Decree No. (43) of 2013: It includes a detailed explanation of how to increase real estate rental returns in the Emirates.
How do I rent houses in the Emirates online?
You can rent your home in the UAE online through the following methods:
- Visit real estate websites to list your house for rent, most notably Alaaqari
- Use one of the electronic real estate applications, the most famous of which is the Dubai REST application, which is available in the Emirates to complete sales or rental transactions.
- Promote your home rental through your social media or those affiliated with accredited real estate marketing companies.
- Use the pages of real estate agents and brokers online and obtain their expert advice about wanting to rent your home.
- When you find the right tenant, you can agree with him online and under the umbrella of a real estate website, to complete the procedures for signing the lease contract with all credibility and transparency.
How to rent villas in Dubai
You can rent your villa in Dubai by following these steps:
- Announce your desire to rent the villa you own to one of the reliable real estate offices in the Emirates – Dubai.
- You can also advertise the rental of your villa on a real estate website online.
- When the right client (tenant) is present, he can visit the property and get to know it up close or through remote virtual tours.
- When full agreement on the rental price is reached, the procedures for initiating the rental contract begin.
- Commitment to all rights and duties of the landlord and tenant by both parties to the lease contract and in accordance with the rental laws approved in the country.
- The rental period and residence in the villa are also specified in the rental contract.
- Register the lease contract directly with Dubai Land Department, or electronically via the Ejari system or the Dubai REST application
Properties for rent in UAE
How are real estate rentals accounted for?
Methods of accounting for real estate rent in the UAE include:
- Real estate rent can be paid in cash directly to the owner.
- Paying the property rent to the owner via bank checks addressed to his bank account.
- Pay the property rent to the owner online through the direct payment service through Dubai Land Department
- Use electronic applications to pay rent to the property owner, such as Noqodi
Real estate rental system in the Emirates
The real estate rental system in the Emirates includes the following points:
- Accurate and comprehensive search for the appropriate property for rent at a price consistent with the tenant’s budget.
- When the desired property is found, you can meet with the property owner and negotiate the price with him.
- After agreeing with the landlord and inspecting the property, the tenant must complete all required documents and proofs. This is in the process of preparing to sign the lease contract with the landlord in accordance with the rental laws in the Emirates.
- Payment of a refundable security deposit to the landlord by the tenant.
- Signing the lease contract between the landlord and the tenant, and paying the fees incurred by the tenant as a result of signing the contract.
- Completing the procedures for registering the property with the Dubai Land Department or the official real estate authorities affiliated with the rest of the Emirates.
Growth of the real estate rental market in Dubai and Abu Dhabi
News about the real estate rental market in Dubai and Abu Dhabi can be summarized within the following list:
- Residential unit rental prices in Dubai for the year 2023 increased by 22% compared to last year, while the demand rate is maintained and does not decline.
- Recording continued growth in rental of residential properties in Abu Dhabi during the year 2023 and expectations of continued growth in prices during the coming year.
- Growth in both transaction volume and price growth rate is expected over the next year.
- The growth of the commercial real estate rental market in Abu Dhabi during the first half of 2023, with expectations of a decline in real estate activity for rental requests during the second half of the year.
- The demand for renting commercial real estate in Dubai has continued since the beginning of 2023 without any significant decline.
Real estate rental market trends in the UAE
Here are the most prominent trends in the rental real estate market in the UAE for the year 2023:
- Residential rental prices have increased in Dubai, as the prices of residential properties rented on the waterfront have increased by 80% during the first half of 2023.
- The average rent for real estate in Dubai from the beginning of 2023 to the middle of 2023 increased by 22%, which is a high rate for the emirate compared to previous years.
- The prices of rented apartments also increased by 24.3% in 2023 compared to previous years.
- Prices of villas and detached houses increased by an average of 16.5% in 2023 compared to previous years.
Successful strategies for renting real estate in the Emirates and marketing on Alaaqari website
Alaaqari website has developed several successful strategies in terms of renting and marketing real estate in the Emirates, which are as follows:
- The ability to advertise on Alaaqari website about renting real estate, regardless of its type, residential or commercial.
- Obtain real estate consultations about renting properties through the best real estate brokers and agents.
- Obtaining a property rental price evaluation service compared to market prices.
- Providing a comprehensive list of advertising offers for renting various types of real estate in the Emirates in order to facilitate search by those wishing to rent.
- Ensuring successful communication between both parties of the rental process (lessor and tenant) after finding the appropriate tenant.
Tips for owners in the process of renting real estate in the Emirates
There are some tips for owners regarding the process of renting real estate in the Emirates, which are as follows:
- Advertising the property for rent through real estate offices or famous real estate websites.
- Setting the appropriate price for the property offered for rent.
- Choosing the appropriate tenant after asking about his budget and financial situation, so that he does not delay paying the rent.
- Signing the official lease agreement with the tenant.
- Registering the lease contract within the official government agency without any delay or procrastination to guarantee the rights of both the landlord and the tenant.
- Following up on the status of the property after renting and ensuring that the tenant is committed to paying water and electricity bills, and not making any changes to the building descriptions.
Here we have reached the conclusion of our article about how to rent real estate in the Emirates and increase the rate of return on investment. We reviewed all the details of the rental laws and rental process procedures. In addition to mentioning the trends and growth of the UAE real estate market for rental properties during the current year. We hope that this information will please you and that you will find all the benefits and knowledge in it.
