Market Trends, Demands & More; Dubai To Witness A Rental Price Surge In 2024

Anticipated modest rise in Dubai rents for 2024 amidst market dynamics

by Deeplata Garde
Market Trends, Demands & More; Dubai To Witness A Rental Price Surge In 2024

In the evolving real estate scenario of Dubai, the rental market is expected to witness continued upward trends in 2024. However, the pace of this ascent is poised to adopt a more measured trajectory, influenced by factors like persistent undersupply within the market and an influx of foreign professionals and investors into the city.

The Dynamics Shaping Dubai’s Rental Landscape

Pic Creds: Twitter/ Dubai Media Office

As per an interview given to Khaleej Times, Jacob Bramley, Leasing Manager at Better Homes, envisions a scenario where rents experience a more tempered increase compared to the robust trends witnessed in the preceding two years. The persisting undersupply, coupled with sustained enquiries, indicates a stable market. However, the anticipated surge in property handovers next year, particularly in areas like Jumeirah Village Circle (JVC) and Tilal Al Ghaf, is expected to introduce heightened competition, thereby moderating the intensity of price escalations.

Market Trends and Insights from Real Estate Consultancies

Pic Creds: Canva

Insights from real estate consultancy Asteco suggest a gradual moderation in the growth rate of Dubai’s rental market during the third quarter. While activity persisted across various rental rate brackets, certain averages displayed stability. The rental gains stood at 3%, 2%, and 4% for apartments, villas, and offices, respectively, over the three months. On an annual scale, these changes amounted to 18%, 19%, and 29%, respectively.

Cherif Sleiman, Chief Revenue Officer at Property Finder, identifies key areas commanding preference for apartments and villas. For apartments, Dubai Marina, Jumeirah Village Circle (JVC), Business Bay, Downtown Dubai, and Jumeirah Lake Towers (JLT) remain popular. Villas witness high demand in Dubai Hills Estate, Damac Hills 2, Al Barsha, Jumeirah, and Damac Hills.

Emerging Demand Patterns and Future Projections

Marsa Al Arab
Pic Creds: Dubai Holding

Property Finder’s data for November highlights a notable preference for one-bedroom apartments, constituting 36% of searches, followed by 30% for two-bedroom apartments and 24% for studios. In the villa/townhouse segment, the demand is notably high for three-bedroom options (42%) and four-bedroom or larger residences (35%). Furnished homes are preferred by 66% of tenants, while 32% seek unfurnished options. In the villa/townhouse category, 51% are in search of unfurnished properties, with 48% seeking furnished listings.

Sleiman anticipates that new projects in previously unexplored neighbourhoods will inject more options into the market, supporting the burgeoning demand. According to Jacob Bramley, the introduction of new supply in areas like JVC, Cherrywoods, and Tilal Al Ghaf will intensify competition among landlords, offering tenants unprecedented choices compared to previous periods.

Also Read: 7 Most Pet-Friendly Rentals In Dubai To Know Of

Blue Line Metro’s Impact On Nearby Area’s Rental Surge

Expect a significant surge in rents and property prices across Dubai’s key districts. The areas include International City, Silicon Oasis, Ras Al Khor, Mirdif, Al Warqa, and others. The driving force behind these substantial increases will be the forthcoming Blue Line extension of the Dubai Metro, creating a seamless connection.

The new metro line of Dubai is expected to become operational in 2029. Upon completion, it will directly benefit around one million individuals residing in the covered areas.

In conclusion, Dubai’s rental landscape will witness a  nuanced shift in 2024. One can expect factors such as increased supply and shifting demand patterns contributing to a more measured trajectory in rental price escalations. The market’s resilience, coupled with the introduction of new projects, promises an environment where both landlords and tenants can navigate with a degree of
flexibility and choice.

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