Amidst a burgeoning real estate landscape, several communities in Dubai have witnessed staggering rent hikes of up to Dh150,000, reflecting a dynamic market poised for continued growth.
Industry insiders have projected a further 10 percent increase in rental rates through the second half of 2024, underscoring sustained momentum following a robust first half.
Driven by an influx of high-net-worth individuals and a burgeoning economy generating new employment opportunities, Dubai's rental sector has seen a sharp uptick post-pandemic.
Jacob Bramley, senior leasing manager at Betterhomes, anticipates a consistent rise, citing upcoming property handovers in the latter part of the year as a catalyst for maintaining a 5-10 percent growth trajectory.
Lewis Allsopp, chairman of Allsopp and Allsopp, emphasized the influx of over 30,000 new residents in the first half of 2024, with expectations of more than 6,700 millionaires migrating to Dubai, further stimulating housing demand. Allsopp also noted a pivotal increase in property supply, with 10,000 units slated for Q2 alone, aimed at meeting escalating demands.
The market's performance in H1 2024 revealed a significant average rent increase of 15.7 percent compared to the same period in 2023. Apartments and townhouses saw nearly 15 percent upticks, while villas recorded an average increase of 18 percent. The adjustment reflects the impact of the updated Rera Index earlier this year, aligning previously undervalued units with market averages.
With landlords now offering flexible payment schemes to accommodate rising costs, stakeholders are bracing for a steady evolution in rental dynamics. As Dubai continues to attract a diverse demographic seeking residential opportunities, analysts foresee a resilient market set for further expansion into 2025.
Where rents rose Dh150,000 in a year
In the first half of 2024, key areas like Jumeirah Beach Residence (JBR), Town Square, Dubai Production City, Dubai Healthcare City 2, and Meydan saw rental increases of 21-22%, according to data from Allsopp & Allsopp.
Dubai South's average rents surged by 38% compared to the first half of last year, driven by heightened demand following the announcement of the new Al Maktoum Airport earlier this year.
Luxury communities such as Jumeirah Islands saw rents rise by 43%, reaching Dh500,000 in H1 2024, up from Dh350,000 last year. Al Barari experienced a 39% increase, with average rents climbing from about Dh300,000 to Dh400,000 during the same period.
Tilal Al Ghaf led the way with a 21% rental growth in the first half of 2024, followed by Dubai Hills Estate (14%), The Villa Project (12%), and Dubai Creek Harbour (11%), all recording increases of over 10% in average rental price per square foot, as noted by Bramley.
News Source: Khaleej Times
