10/02/2024
Rents in Dubai are expected to rise 20% by 2024
Anticipated growth of 23–30% in upscale Dubai residential area rents in 2024 is attributed to various factors, including the city’s appeal to the wealthy, increased investor interest, professional influx, and population surge. Experts project rising rents if migration to Dubai outpaces new home availability. The 2024 rental landscape hinges on factors like increased property purchases, boosting real estate’s allure for investment.
Colife’s Ilnara Muzafyarova notes a robust trend post-23% annual rental increase in H1 2023, predicting 20% short-term and 15% long-term rental hikes in 2024. S&P forecasts a 5.0–7.0% home price rise in 2024, disputing a market slowdown. CBRE reports 42% Dubai rent and 33% home price increases by January 2020. Colife’s Dubai Marina apartment income rose by 21.2% to $2,970, with an expected 2024 increase to $3,415. Demand for Dubai residential space persists, backed by a growing population and professional influx. Asteco notes a Q3 moderation in Dubai rental growth, with a 3.0%, 2.0%, and 4.0% increase for apartments, villas, and offices, respectively.
Property Finder’s November data highlights one-bedroom apartment demand at 36%, two-bedroom at 30%, and studio at 24%. Three-bedroom villas or townhouses attract 42%, while larger four-bedroom properties appeal to 35%. Of tenants, 66% prefer furnished apartments, and 32% desire unfurnished. For villas or townhouses, 51% seek unfurnished, and 48% prefer furnished.
Dubai Statistical Centre estimates a July 2023 population of 3,604,030, with a projected 5.8 million by 2040 per the Development Master Plan.
