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Dubai’s rents are predicted to go up by 20% by 2024

Posted by Luxury Link Properties on January 4, 2024

Rents in posh areas of Dubai are likely to go up by around 20% in 2024, following a year of significant growth, expected between 23% to 30%. Property experts believe this upward trend will continue due to various reasons, such as Dubai’s attractiveness for the wealthy, increased investor interest, and a rise in the number of professionals and residents.

The rental prices are expected to keep rising if more people move to Dubai compared to the number of new homes available. The trends in 2024 could be influenced by factors like more people choosing to buy homes rather than rent and the growing interest in real estate as an investment.

A real estate management company, noted a strong upward trend in rental prices. Predictions suggest a 20% rise in short-term rentals (up to six months) and a 15% increase in long-term rentals (more than six months) from 2023. This reflects the natural market expansion, which has already seen a 15% increase in apartment prices between mid-2022 and mid-2023.

Analysts from real estate consulting firm reported a 42% hike in rents and a 33% increase in home prices since January 2020. Villa rentals have also surged, now averaging $88,400 annually after a 19.2% increase in November alone.

The real estate market in Dubai appears vibrant, as seen in rising rents, increasing property values, construction of new tall buildings, and a sharp uptick in property transactions.

An owner owning one-bedroom apartment in Dubai Marina, experienced a significant 21.2% rise in monthly income to $2,970 compared to the previous year. They predict owners could see even higher returns reaching around $3,415 per month in 2024.

Experts foresee a consistent demand for residential spaces in Dubai due to the growing population and an influx of international professionals.

The third quarter showed a gradual slowdown in Dubai’s rental market growth, with rental increases of 3.0%, 2.0%, and 4.0% for apartments, villas, and offices, respectively, over three months. These changes reflect annual increases of 18%, 19%, and 29%, respectively.

Property Finder’s November data indicates high demand for one-bedroom apartments, followed by two-bedroom apartments and studios. Similarly, four-bedroom properties are preferred over three-bedroom ones. Sixty-six percent of tenants prefer furnished apartments.

As per Dubai Statistical Centre estimates, as of July 2023, Dubai’s population stands at 3,604,030, expecting to reach 5.8 million by 2040 according to the city’s Development Master Plan.

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