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.
According to real estate consultancy Asteco, the Dubai rental market has seen a gradual moderation in growth rate in the third quarter.
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.
Based on the demand and popularity, it is expected that these areas will command higher rental growth in the coming years.
Property Finder’s November data showed one-bedroom apartments witnessing the highest demand. Around 36 per cent of people were found to search for one-bedroom apartments, while 30 per cent looked for two-bedroom apartments, and 24 per cent for studios. For villas/townhouses, 42 per cent looked for three bedrooms, and 35 per cent were searching for four-bedroom and larger options. Furnished homes were preferred by 66 per cent of tenants, but 32 per cent wanted unfurnished. For villas/townhouses, 51 per cent looked for unfurnished, and 48 per cent sought furnished listings.
