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Press Dossier   News Category    Economy    Dubai: Rents to continue rising in 2024, but at a slower pace

Khaleej Times, Sun, Dec 10, 2023 | Jumada Al-Uola 26, 1445

Dubai: Rents to continue rising in 2024, but at a slower pace

Emirates: Rents in Dubai will continue to rise in 2024 but at a more modest pace, due to undersupply in the market and the migration of foreign professionals and investors into the city.

However, some areas such as Jumeirah Village Circle (JVC) and Tilal Al Ghaf will see a number of handovers next year, giving tenants more options and landlords in the neighbourhoods a run for their money.

“I see rents continuing to rise at a more measured rate than what we have seen over the last two years," says Jacob Bramley, leasing manager at Betterhomes. "There is still an undersupply of property with us receiving large numbers of enquiries and listings stabilising through to the fourth quarter. It is the number of homes that will be handed over next year offering competition on prices that makes me think that price increases may be less punchy."

According to real estate consultancy Asteco, the Dubai rental market has seen a gradual moderation in growth rate in the third quarter.

“Whilst there has been activity in both lower and upper rental rate brackets, certain averages have remained static,” says Asteco.

There is “a definite slowdown” with rental gains at 3 per cent, 2 per cent, and 4 per cent for apartments, villas and offices over the three months. "On an annual scale, the changes stood at 18 per cent, 19 per cent and 29 per cent, respectively,” said Asteco.

Bramley said demand for housing across the city continues to soar, translating into a scarcity of vacant properties. For landlords, this translates into minimal to no long void periods, affirming a robust and thriving rental market.

Where will rents rise faster?

Cherif Sleiman, chief revenue officer, Property Finder, says the commonly preferred areas for apartments are Dubai Marina, Jumeirah Village Circle (JVC), Business Bay, Downtown Dubai, and Jumeirah Lake Towers (JLT). For villas, Dubai Hills Estate, Damac Hills 2, Al Barsha, Jumeirah, and Damac Hills are the most popular areas.

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