Dubai rents have increased by 23.7% year-on-year

Residential rents in Dubai continued to rise in June.

According to new figures , the 0.16% increase in June brought the overall increase in rents for the year to 23.7%.The high year-on-year growth shows that property investments in Dubai are offering strong returns to investors.

It also bodes well for the future as, despite the rising rates, tenant demand in the emirate remains high.In April, HSBC Global research said that Dubai will see a supply increase of 90,000 new units by 2018. Such is the strength of current demand, the bank believes that even if the population rises by less than 5% between now and then, the market will absorb the units easily and occupancy rates will remain high.