Rising Tides in Dubai’s Real Estate: A 2024 Rental Market Forecast

• Rental Growth: Dubai’s upscale residential areas are projected to see up to a 20% increase in rents by 2024. This follows a substantial growth period where rents grew by an estimated 23-30%.

• Driving Factors: Dubai’s attractiveness to wealthy individuals, increased investor interest, an influx of professionals, and a surge in population are key reasons behind this trend.

• Rental Trends: There’s a strong upward trend in rental prices. Short-term rentals could see a 20% hike, while long-term rentals might increase by 15%.

• Property Market Strength: The Dubai property market is showing strong performance. Apartment prices increased by 15% in a year, and property values in general have risen significantly.

• Population Dynamics: Dubai’s population is growing rapidly, over 3.6 million as of July 2023, with projections of reaching 5.8 million by 2040.

• Market Outlook: Despite the growth, there has been a gradual moderation in the growth rate of Dubai’s rental market, with a noticeable slowdown in recent quarters.

• Housing Preferences: Demand is highest for one-bedroom apartments, followed by two-bedroom apartments and studios. For villas and townhouses, larger properties are more in demand.

• Furnishing Trends: A significant portion of tenants prefer furnished apartments, while a slightly higher preference for unfurnished villas or townhouses is observed.

Source: Propertynews.ae