The Dubai real estate market has witnessed a significant uptick in rental prices, with projections hinting at a potential further climb in 2024, attracting both long-term and short-term investors seeking returns, as outlined by analysts.
Rental prices surged by nearly 23% annually in the initial half of 2023, and year-end forecasts suggest an anticipated growth of approximately 30%.
According to an expert in Dubai’s real estate management sector, this upward trajectory is expected to continue. expert stated, “Since the year’s commencement, long-term rental prices have increased by 27%. In October, with the transition from the low to high season, short-term rentals saw a spike of up to 30%. Surprisingly, this summer, despite milder temperatures, didn’t witness the typical drop in rental demand.”
“In 2024, we anticipate a 20% increase in short-term rentals (up to 6 months) compared to 2023 and a 15% rise in long-term rentals (over 6 months). This growth aligns with the burgeoning real estate market, reflected in rising property values, increased high-rise building operations, and a surge in property transactions.”
“The escalation in rental costs correlates with apartment price hikes,”. “From mid-2022 to mid-2023, apartment prices rose by 15%. Not only are prices soaring, but property transactions are also on the rise. Dubai observed over 30,000 property transactions in 2022, and this is anticipated to reach 50,000 in 2023.”
“Investors are acquiring apartments for rental purposes, meeting a consistent high demand for both short and long-term stays. However, our data shows that most clients prefer apartments for periods exceeding six months, even up to a full year.”
Expert shared specifics of a one-bedroom unit in Dubai Marina, which presently generates a monthly income of $2,970 for its owner—an increase of 21.2% compared to similar properties a year ago. Their 2024 forecast estimates a more substantial monthly income of around $3,415 for the owner.
The influx of professionals globally relocating to Dubai for work opportunities, competitive salaries, quality of life, and favorable climate continues to influence the rising rental prices.