Dubai Rents Surge by 15% in 2024 Amid Steady Market Growth
Date: 30-Aug-2024 | Category: News & Updates
Dubai's rental market is experiencing a remarkable transformation with rental prices increasing by up to 15% since the Real Estate Regulatory Agency (RERA) updated its rental index in March 2024. The latest report from Cushman and Wakefield reveals that most districts have seen rental hikes ranging from 8% to 15% driven by a consistent upward trend over the past 14 quarters.
The RERA rental index adjustment reflects this surge with rents now 64% higher compared to the period before the COVID-19 pandemic and a 19% increase reported in the second quarter of 2024 compared to the same time last year. This ongoing trend has led to more tenants choosing to renew their leases rather than moving to new properties as new lease rates continue to rise.
In terms of specific categories, villa rents have seen notable increases. Affordable villas rose by 21%, mainstream villas by 12% and prime villas by 1%. Similarly, apartments rents have experienced substantial growth with affordable apartments up by 27%, mainstream by 19% and prime by 14% during the second quarter of 2024. This data provided by Cushman & Wakefield core highlights the robust demand for rental properties across different segments of the market.
Despite the upward trend in rents there are signs of moderation in certain areas. Villa rents have shown relative stabilization with a 13% year on year increased by 14% in Q2 2024.
Areas like Jumeirah Village Circle saw the highest rent increase with a 40% rise followed by Jumeirah Park at 22% and The Springs and The Meadows at 14%. For apartments, Discovery Gardens saw a 32% increase, Dubai Sports City 28% and Dubailand 24%.
In the sales market, citywide prices have increased for the 16th consecutive quarter with a 21% year-on-year rise. While prime districts are experiencing slower price increases, mainstream and affordable areas continue to see steep hikes impacting affordability. Primary off-plan sales prices are generally higher than secondary ones.
The Dubai real estate market is booming characterized by significant rental and sales price increases that reflect strong demand and economic resilience. As tenants seek stability and investors remain confident, the market is poised for continued growth. With diverse options available across various districts, Dubai's real estate environment is booming, making it an attractive destination for residents and investors alike.