Dubai’s real estate rental business is expected to grow to new heights in 2024, having reached almost $10 billion last year.

According to Provident Property Management, the rental activity in the Dubai real estate market has increased significantly, indicating the market’s continued success.

A new report said the average price for renting apartments in the city is approximately AED73 ($20) per square foot so far this year, up from around AED62 ($17) per square foot at the same time last year. During the same period, villas and townhouses have climbed to AED76 ($21) per square foot from AED54 ($15) per square foot.

Apartment rents in Dubai

The apartment rental market in Dubai witnessed remarkable figures in 2024. About 173,000 units were rented, yielding a total of AED11.3bn ($3.1bn) in rent.

The average rent per sq. ft. stands at AED73 ($20). Notably, recent contracts independently accounted for nearly 66,000 units rented, contributing AED5bn ($1.4bn) in rent with an average of AED86 ($23) per sq. ft.

In comparison, by the end of May 2023, approximately 188,000 units had been rented, totaling AED10.7bn ($2.9bn) in rent, with an average rent of AED62 ($17) per square foot.

Recent contracts during this period contained 76,000 units rented, gathering AED4.6bn ($1.3bn) in rent, averaging AED69 ($19) per sq. ft.

For the whole of 2023, a tremendous 456,000 units were rented, obtaining AED27bn ($7.4bn) in total rent, with an average rent of AED65 ($18) per sq. ft.

New contracts for the year included 186,000 units, totaling AED12bn ($3.3bn) in rent, with an average rent of AED74 ($20) per square foot.

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Villa and townhouse rents in Dubai

The rental market for townhouses and villas has also indicated significant action in 2024. So far, almost 20,000 units have been rented, yielding AED3.6bn ($980m) in rent, with an average rent of AED66 ($18) per sq. ft.

New contracts alone account for nearly 9,000 units rented, totaling AED1.8bn ($490m) in rent, with an average rent of AED76 ($21) per square foot.

By the end of May 2023, the market had seen 20,000 units rented, bringing in AED3.3bn ($899m) in total rent and an average rent of AED54 ($15) per square foot.

New agreements during this period contained 8,000 units rented, totaling AED1.5bn ($408m) in rent, with a moderate rent of AED62 ($17) per sq. ft.

In 2023, the rental market for villas and townhouses saw 54,600 units rented, yielding AED9.4bn ($2.6bn) in rent, with an average rent of AED58 ($16) per sq. ft.

Recent contracts included 23,000 units, contributing AED5bn ($1.4bn) in rent, with a moderate rent of AED67 ($18) per sq. ft.

Youssef Rabah, Director of Provident Property Management, said: “The data reflects a vibrant and dynamic rental market in Dubai. We are witnessing increased demand across both apartments and villas/townhouses, indicating strong investor confidence and a healthy rental ecosystem.”