July 2024: Dubai Real Estate Market Rents

This post will provide an in-depth analysis of the property rental market for July 2024.

Market performance for property rents overall

Entering into 3rd Quarter this year, we continue to notice a growing demand for rent in existing properties and new exciting projects being launched by property developers, which offers future rental income for property investors in off-plan projects.

Source: DXB Interact

Last month, the annual rent on new contracts for apartments, villas and commercial properties in the city was 74,000 AED, representing a 10% increase from January this year.

Breakdown by property type of rental prices change, as compared to same month last year:

Apartments 15.4% increase vs July 2023

Villas and Townhouses 15.9% increase vs July 2023

Commercial properties -23.6% decrease vs July 2023

The prices increase for apartments and villas reflects the robust demand continuing in the summer months as people move from their previous homes after may receiving eviction notices last year. The recent RERA rent calculator adjustments is also a significant factor of these numbers.

Rental performance for apartments

Source: DXB Interact

Last month, the annual rent on new contracts for apartments in the city, increase to 66,000 AED, making a 10% increase from January this year.

The overall rental price change on apartments by main areas looks as follows:

• Dubai Marina - 15% increase compared to same month LY sitting at a median rent of 115,000 AED same as May and June

• Downtown Dubai - 11% increase compared to same month LY sitting at a median rent of 135,000 AED, down from 140,000 AED in June

• Business Bay - 6% increase compared to same month LY sitting at a median rent of 85,000 AED compared to 92,400 AED in June

• Palm Jumeirah - 9% increase compared to same month LY sitting at a median rent of 175,000 AED down from 180,000 AED in June

The above are the most commonly preferred areas for luxury apartments among with Jumeirah Bay Island or Blue Waters Island.

Tenants looking for affordable apartments are looking at Deira, Bur Dubai, Al Qusais followed by International City.

These trends provide a comprehensive view of the rental market in Dubai’s various neighborhoods. It’s important to note that these trends can change over time due to various factors such as economic conditions, supply and demand, and government regulations.

Dubai rents set to jump 10% in remainder of 2024

Khaleej Times article 2024

Conclusion

The Dubai real estate rents market continues to thrive, backed by the city's dynamic economic landscape and its appeal as a global business and touristic hub. With a wide range of offerings in primary off-plan projects and secondary market ready property having world-class amenities, Dubai remains a hotspot for renting properties both for long term and short term. As we move forward, it will be interesting to see how these trends evolve and shape the future of the real estate market in Dubai.