Dubai rents are projected to increase by 20% in 2024.

Rents in Dubai’s prime residential areas are projected to rise by up to 20% in 2024, following an impressive surge estimated between 23% and 30% over the past year. Property experts attribute this sustained momentum to factors such as increased investor interest, a steady inflow of professionals, population growth, and Dubai’s appeal as a global lifestyle destination.

Analysts highlight that the ongoing net migration into Dubai outpaces the rate at which new properties are entering the market, putting continued pressure on rental prices. Additionally, the allure of Dubai real estate as an investment and a shift towards ownership among residents could further influence rental trends in 2024.

Ilnara Muzafyarova, head of Colife real estate management, notes a sharp 23% rise in rental prices during the first half of 2023, with year-end projections nearing 30%. She foresees a 20% increase in short-term rentals (up to six months) and a 15% rise for longer-term leases, fueled by natural growth in the market. Over the past year, apartment prices have increased by 15%, adding to Dubai’s robust property market.

S&P has also forecasted a 5%-7% rise in home prices for 2024, with no indications of a market slowdown, says Tatiana Leskova, associate director of Corporate Ratings at S&P. According to CBRE, Dubai rents have surged by 42% since January 2020, with villa rents averaging $88,400 annually, reflecting the strong upward trend across residential segments.

Data from Property Finder in November shows high demand for one-bedroom apartments, with 36% of searches directed toward this category, followed by two-bedroom units and studios. For villas and townhouses, three-bedroom options are the most sought after, followed by four-bedroom and larger homes. Furnished properties are preferred by 66% of apartment tenants, while a majority of villa seekers opt for unfurnished homes.

As of July 2023, Dubai’s population reached 3.6 million, up from 3.5 million in 2022. The city’s Development Master Plan projects continued growth, aiming for 5.8 million residents by 2040.

The robust demand from professionals worldwide, along with population expansion, suggests sustained interest in Dubai’s residential market in the coming years, positioning the city as a leading global destination for investment and living.