Rental Trends Driving Demand in Dubai's Property Market
February 11, 2025 (Investorideas.com Newswire) The property prices in Dubai's rental market increased significantly due to high demand witnessed in all sectors. As of December 10, 2024, there were almost 1.02 million rental transactions amounting to AED 74.5 billion according to the rental market report by Bayut, a leading property platform in the UAE. This article discusses some of the important factors that have led to the increase in demand for rental properties within Dubai's real estate sector according to the 2024 rental report.
Trends in Affordable Apartments
For those looking for cheap apartments to rent in Dubai, Deira, Bur Dubai, and International City are the most preferred places. It was noted that there was an increase of between 12% to 48% in the cost of renting properties within these vicinities. Using Bayut's search features users can also find affordable furnished apartments for rent in Dubai monthly as per their preferences. There was a notable surge in prices of studio flats as well as one bedroomed accommodation units within these areas indicating an increased need for affordable housing solutions across the emirate.
Rental Trends
- Deira: Average yearly rent for a studio apartment is AED 31,000, one-bedroom is AED 57,000, and two-bedroom is AED 93,000.
- Bur Dubai: Average yearly rent for a studio apartment is AED 48,000, one-bedroom is AED 71,000, and two-bedroom is AED 97,000.
Trends in Mid-Tier Apartments
For those looking to rent mid-range apartments, Jumeirah Village Circle (JVC), Business Bay, and Jumeirah Lake Towers (JLT) are the most ideal locations. The cost of renting an apartment in these areas increased by between 20% to 41%. It was evident that there were many people who would prefer living specifically at the mid-level segment apartments among which JVC was a very common example. The prices for one-bedroom and two-bedroom units went up the most.
Rental Trends
- Jumeirah Village Circle (JVC): Average yearly rent for a studio apartment is AED 52,000, a one-bedroom is AED 74,000, and a two-bedroom is AED 109,000.
- Business Bay: Average yearly rent for a studio apartment is AED 76,000, one-bedroom is AED 104,000, and two-bedroom is AED 150,000.
Trends in Luxury Apartments
For luxury apartments, people prefer to rent at Dubai Marina, Downtown Dubai, and Meydan City. The cost of renting an apartment in these places increased by as much as 26 percent. There was a significant increase in the cost of renting one-bedroom and three-bedroom apartments, especially in Dubai Marina.
Rental Trends
- Dubai Marina: Average yearly rent for a one-bedroom apartment is AED 111,000, a two-bedroom is AED 167,000, and a three-bedroom is AED 258,000.
- Downtown Dubai: Average yearly rent for a one-bedroom apartment is AED 135,000, a two-bedroom is AED 234,000, and a three-bedroom is AED 380,000.
Trends in Affordable Villas
The increase in rent between 19% and 44% attracted tenants looking for cheap villa rentals in DAMAC Hills 2, Mirdif, and Dubailand. The three locations saw an increase in rents which was between 19% and 44%. Among all these areas, DAMAC Hills 2 was the most preferred one. It can be seen that there is a preference for large affordable houses among tenants from the fact that the three-bedroom units experienced the highest increase.
Rental Trends
- DAMAC Hills 2: Average yearly rent for a three-bedroom villa is AED 99,000, a four-bedroom is AED 110,000, and a five-bedroom is AED 145,000.
- Mirdif: Average yearly rent for a three-bedroom villa is AED 130,000, four-bedroom is AED 155,000, and five-bedroom is AED 180,000.
Trends in Mid-Tier Villas
The mid-range villa rental sector was led by Jumeirah Village Circle (JVC) with Town Square and Arabian Ranches 3 following. Rental rates increased by as much as 45% in such areas because there continued to be a high requirement for larger houses.
Rental Trends
- Jumeirah Village Circle (JVC): Average yearly rent for a three-bedroom villa is AED 180,000, a four-bedroom is AED 209,000, and a five-bedroom is AED 239,000.
- Town Square: Average yearly rent for a three-bedroom villa is AED 149,000 and four-bedroom is AED 188,000.
Trends in Luxury Villas
Luxury villa tenants were mostly interested in Dubai Hills Estate, Al Barsha, and Jumeirah. The cost of renting a home in these areas went up by 23% - 60% with Jumeirah experiencing the highest jump, especially in rents for six-bedroom luxury villas which indicated high demand for spacious centrally positioned family accommodations.
Rental Trends
- Dubai Hills Estate: Average yearly rent for a four-bedroom villa is AED 355,000, a five-bedroom is AED 414,000, and a six-bedroom is AED 1,911,000.
- Al Barsha: Average yearly rent for a five-bedroom villa is AED 425,000 and six-bedroom is AED 607,000.
Disclaimer: The mentioned prices may vary due to changing market conditions and other factors. It is advised to do your research or speak to a real estate professional before deciding.
Conclusion
The 2024 rental market of Dubai shows that prices are rising. This is noticeable in all types of properties and at every location too. From the trend, it is apparent that people will keep on wanting more of the two; apartments and villas for which they are now considering factors such as cost, space, and social life when making a choice. The increase in population growth rate and economic boom experienced in Dubai today imply that there will always be changes experienced within the rental sector.
Frequently Asked Questions
Q1: How will the Dubai Smart Rental Index impact rental prices in 2025?
A: By making it easier to determine the correct value of property, the Dubai Smart Rental Index enables landlords and tenants to understand accurate property valuations, therefore fostering prudent choices and negotiations.
Q2: What are the expected rental increases in Dubai for 2025?
A: Factors like an increasing number of professionals, high property prices, and robust investor confidence are expected to drive up long-term rent by 13% and short-term rent by up to 18% according to analysts in 2025.
Q3: Are there any new regulations expected in Dubai's rental market that renters should be aware of?
A: Be vigilant for Real Estate Regulatory Agency (RERA) communications on lease agreements, conflict solution mechanisms, and lessee entitlements. Compliance with such updates would guarantee your safety and well-being.
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