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.
Also Read: Dubai Land Department fines real estate developers $408,400 for breaking off-plan property rules
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.”
