Khaleej Times, Sun, Dec 10, 2023 | Jumada Al-Uola 26, 1445
Dubai: Rents to continue rising in 2024, but at a slower pace
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