Dubai apartment rents to rise in 2024

Over the past few years, Dubai's real estate market has demonstrated high resilience and remains an attractive place to invest. Among the main factors involved are infrastructure development, government initiatives, and population growth.

According to experts, Dubai apartment rents will increase in 2024. Capital values across the emirate rose by about 20% in the past year alone. The cost of apartments increased by 14%, while the cost of villas increased by 23% year-on-year. Real estate prices are projected to rise by 5–7% in 2024.

In recent times, the demand trend has shifted towards more affordable communities because property buyers are interested in lower prices and the increased potential of future investment. These districts include Dubai Silicon Oasis, Business Bay, Discovery Gardens, Jumeirah Village, The Greens and Dubai Production City.

In the third quarter of 2023, rents for residential real estate increased by 27% year-on-year, with an average gross yield of 8.6%. In Dubai, the increased demand exceeds the supply in the emirate. This may lead to apartment rental costs continuing to rise throughout 2024, especially for new contracts.

The cost of renting villas has started to stabilise, reaching potential price limits. The main reason for this is that buyers are looking for more affordable options. This trend is expected to continue in early 2024.

Despite recent price inflation over the past few years, the luxury real estate sector in the emirate remains relatively more affordable than in major cities around the world. This provides a convenient entry point for investors who seek long-term value appreciation.