Dubai Rental Market: Check the Projected Trends for 2024

Rental rates in Dubai are anticipated to sustain an upward trajectory in 2024, albeit at a more restrained pace. Factors contributing to this incline include market undersupply and the continual influx of foreign professionals and investors into the city.

Areas such as Jumeirah Village Circle (JVC) and Tilal Al Ghaf are set to experience a surge in property handovers in the upcoming year. This surge is poised to expand tenant options while introducing heightened competition among landlords in these neighborhoods.

Insights from Industry Experts:

Jacob Bramley, Betterhomes’ leasing manager, foresees a more tempered rental increase next year due to the influx of available properties. 

Demand remains robust, but the surge in supply is expected to ease the rapid price escalations seen in recent years.

Market Observations from Asteco:

Asteco, a real estate consultancy, notes a moderation in the rental growth rate during the third quarter, citing stability in certain rental averages. 

The quarterly gains stood at 3%, 2%, and 4% for apartments, villas, and offices, respectively, whereas on an annual scale, changes registered at 18%, 19%, and 29%.

Projected Hotspots for Rental Growth:

Cherif Sleiman, Chief Revenue Officer at Property Finder, highlights key areas like Dubai Marina, JVC, Business Bay, Downtown Dubai, Jumeirah Lake Towers (JLT), Dubai Hills Estate, and others, expected to witness accelerated rental growth due to high demand and popularity.

Tenant Preferences and Future Demand:

Property Finder’s November data reveals preferences for one-bedroom apartments among 36% of tenants, with significant searches for two-bedroom apartments and studios. 

Preferences for villa sizes and furnished versus unfurnished options also reflected shifting tenant demands.

Impact of New Projects and Migration Trends:

Sleiman predicts that new projects in previously unexplored neighborhoods will offer additional rental options, aiding the growing demand. 

Meanwhile, Bramley highlights the potential impact of increased migration and the choice between buying and renting on future rental trends in Dubai.