As we transition into the final quarter of 2024, the Dubai real estate market continued to exhibit dynamic trends last month, particularly in the rental sector.
1. Overall performance
September 2024 has been a notable month, reflecting both stability and growth across various segments.
The average rental price on new contracts for apartments, villas and commercial properties in the city was 75,000 AED, representing a 12% increase from January this year and -1% lower vs prior month. The rents values show a steady trajectory, signaling a balanced market for both landlords and tenants.
2. Breakdown of rents values by property types for new contracts
Apartments 19.7% increase vs September 2023
Villas and Townhouses 2.9% increase vs September 2023
Commercial properties 8.6% increase vs September 2023
The rental market in Dubai has shown a steady increase in demand, with a notable rise in rental prices across apartments, villas and commercial properties.
Rents performance for apartments
Last month, the annual rent on new contracts for apartments in the city, remained steady at 70,000 AED, representing a 17% increase from January.
3. Popular Areas
The overall rental price changes on new contracts, for apartments in the main areas are as follows:
Luxury Apartments:
Dubai Marina 8.7% YoY increase, sitting at a median rent of 125,000 AED, same level as August
Downtown Dubai 13.6% YoY increase, sitting at a median rent of 150,000 AED, down by -2% compared to August
Business Bay 5.9% YoY increase, sitting at a median rent of 90,000 AED same level as August
Palm Jumeirah -1.3% decrease compared to same month LY sitting at a median rent of 195,000 AED up by 1.3% compared to August
Mid-Tier Apartments on new contracts: Jumeirah Village Circle (JVC) continues to attract tenants, with a 37.5% YoY increase in rental prices for two-bedroom apartments, now averaging AED 110,000 per year.
Affordable Apartments on new contracts: International City, remains the top choice for affordable apartment rentals, with average yearly rents for studios at AED 29,000 and one-bedroom apartments at AED 40,000
Villa Rentals on new contracts:
Affordable Villas: Town Square is the most sought-after area for affordable villa rentals, with average yearly rents for four-bedroom villas at AED 170,000.
Mid-Tier Villas: DAMAC Hills has seen a demand increase in rental prices, with three-bedroom villas averaging AED 210,000 per year.
Luxury Villas: Dubai Hills Estate remains the top choice for luxury villa rentals, with prices for five-bedroom villas ranging from minimum AED 350,000 per year.
4. Demand and Supply Dynamics
The interplay between supply and demand along with increasing expatriate population and the appeal of high-quality living standards, are crucial factors influencing the Dubai property rents market on the long term.
24,000 units are expected to come into the market this year, while currently have been completed 19,337 units in the city.
5. Trends in Rental preferences
There is a growing preference for properties with modern amenities and proximity to key business districts and leisure facilities. Investors and landlords can anticipate sustained demand, particularly in well-developed and strategically located communities.
Conclusion
September 2024 has been a promising month for the Dubai rental market, with positive growth trends across various segments. Whether you are a tenant looking for a new home or an investor seeking lucrative rental income, Dubai’s real estate market continues to offer diverse opportunities.
Stay tuned for our next monthly report to keep abreast of the latest market developments.
Source: DXB Interact
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