The property rental market in Dubai reached around $10bn last year and is set to reach new heights in 2024.
The Dubai real estate market continues to thrive, demonstrating substantial growth in rental activity, according to Provident Property Management.
In a new report it said the average price for renting apartments in the city are approximately AED73 ($20) per square foot so far this year, up from around AED62 ($17) per square foot at the same time last year. Villas and townhouses, during the same period have climbed to AED76 ($21) per square foot from AED54 ($15) per square foot.
Apartment rents in Dubai
The apartment rental market in Dubai has seen impressive figures in 2024. Nearly 173,000 units have been rented, generating a total of AED11.3bn ($3.1bn) in rent.
The average rent per square foot stands at AED73 ($20). Notably, new contracts alone accounted for almost 66,000 units rented, contributing AED5bn ($1.4bn) in rent with an average rent of AED86 ($23) per square foot.
In comparison, by the end of May 2023, approximately 188,000 units had been rented, totalling AED10.7bn ($2.9bn) in rent, with an average rent of AED62 ($17) per square foot.
New contracts during this period comprised 76,000 units rented, amassing AED4.6bn ($1.3bn) in rent, averaging AED69 ($19) per square foot.
For the entirety of 2023, a remarkable 456,000 units were rented, bringing in AED27bn ($7.4bn) in total rent, with an average rent of AED65 ($18) per square foot.
New contracts for the year included 186,000 units, totalling AED12bn ($3.3bn) in rent, with an average rent of AED74 ($20) per square foot.
Villa and townhouse rents in Dubai
The rental market for villas and townhouses has also shown significant activity in 2024. So far, almost 20,000 units have been rented, generating AED3.6bn ($980m) in rent, with an average rent of AED66 ($18) per square foot.
New contracts alone account for nearly 9,000 units rented, totalling 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 contracts during this period included 8,000 units rented, totalling AED1.5bn ($408m) in rent, with an average rent of AED62 ($17) per square foot.
For the whole of 2023, the rental market for villas and townhouses saw 54,600 units rented, generating AED9.4bn ($2.6bn) in rent, with an average rent of AED58 ($16) per square foot.
New contracts comprised 23,000 units, contributing AED5bn ($1.4bn) in rent, with an average rent of AED67 ($18) per square foot.
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.”
Source: ArabianBusiness
