Dubai’s rental market is set to experience a continued rise in 2024, albeit at a slower rate compared to recent years. This trend is attributed to a combination of factors including limited property availability and the influx of foreign professionals and investors.
Notably, certain areas like Jumeirah Village Circle (JVC) and Tilal Al Ghaf are expected to see a surge in property handovers in the coming year. This increase in housing options is likely to intensify competition among landlords and provide more choices for tenants.
Jacob Bramley, leasing manager at Betterhomes, anticipates a steady growth in rental rates. “The market is balancing out with more enquiries and steady listings, but the upcoming property handovers next year could moderate the rent hikes,” he explains.
Asteco, a real estate consultancy, observed a gradual deceleration in the rental market’s growth in the third quarter. The rate of rental increases for apartments, villas, and offices was noted at 3%, 2%, and 4% respectively over three months. Yearly, these rates stood at 18%, 19%, and 29%.
Bramley highlights the sustained high demand for housing in Dubai, leading to a scarcity of vacant properties. For landlords, this translates to shorter periods of unoccupied properties, indicating a strong rental market.
Cherif Sleiman, chief revenue officer at Property Finder, identifies areas like Dubai Marina, Business Bay, Downtown Dubai, Jumeirah Lake Towers (JLT), Dubai Hills Estate, and Damac Hills as popular choices for renters. These areas are expected to see more significant rental growth in the future.
Data from Property Finder in November revealed a high demand for one-bedroom apartments, followed by two-bedroom apartments and studios. In the villas/townhouses category, three-bedroom homes were most sought after, with a preference for furnished homes.
Sleiman also notes that new housing projects in previously lesser-known neighborhoods are likely to offer more options to meet the growing demand.
Bramley points out that new supplies in areas like JVC, Cherrywoods, and Tilal Al Ghaf will lead to more competition among landlords, offering tenants more choices. He also suggests that the continued increase in migration, coupled with a slower rate of new home handovers, could maintain the upward pressure on rental prices.
“If the trend of buying homes over renting continues, and if real estate remains an attractive investment, these factors could significantly influence rental prices in 2024,” Bramley adds.
In summary, Dubai’s rental market in 2024 is expected to grow steadily with new developments offering more options to tenants, and the balance of supply and demand will be a key factor in determining rental rates.
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