Incase you missed it, our Head of Leasing, Harris Hiscoe, and Director of Off-Plan Investments, Jake Matthews Hubbard, recently joined the Dubai Eye Business Breakfast show to discuss the dynamic state of Dubai real estate. Harris provided key insights into the rental market, touching on trends, affordability, and future projections. Here’s what you need to know:
Dubai’s Rental Market Trends: 2024 vs. 2023
Rental prices in Dubai have surged over the past year, with an average increase of 20% across the market. The luxury segment, however, has witnessed a staggering rise—up to 100%, and in some areas, even 200%. This spike is driven by high demand for housing amid a growing population and limited property availability.
Harris emphasised that this demand-supply imbalance will likely continue influencing rental prices in 2025. With an 88% annual increase in rental properties expected, villas and townhouses make up only 9% of this, meaning rents for these sought-after properties are likely to remain elevated.
Affordable Areas in a Surging Market
Despite rising rents, some areas in Dubai still offer relative affordability. Town Square, Mira, and Al Furjan have seen a modest 12% rental increase compared to the broader market, making them attractive options for tenants seeking value.
The Future of Dubai’s Rental Market
While villa and townhouse rents are expected to climb further, Harris expressed hope for stability—or even decreases—in the apartment sector, which consistent rent hikes have dominated.
Renewals, Legacy Contracts, and Tenant Mobility
Renewals are down by 25%, with legacy rental contracts becoming increasingly rare. Rising rental costs are pushing tenants out of traditionally affordable areas, highlighting the challenges many face in maintaining their preferred locations.
Who’s Moving to Dubai, and What Are They Doing?
Dubai continues to attract a diverse demographic, particularly Europeans from countries like the UK and Germany. Harris noted that German investors, in particular, are drawn to Dubai for its strong ROI compared to domestic opportunities.
When asked whether newcomers are buying or renting, Harris shared that most prefer renting for their first year or so before deciding to invest in property. This trend allows them to explore Dubai and choose the right location for long-term living.
What’s Next for Dubai Rentals?
With demand showing no signs of slowing, Dubai’s rental market remains dynamic and competitive. Harris’s insights underscore the importance of staying informed, whether you’re a tenant, investor, or prospective homeowner.
To watch the full interview, click here to visit our YouTube channel.
As a truly customer-centric real estate agency, we offer a range of related services that are designed to make your property journey stress-free and successful from start to end.
