<h2 class="">Dubai Real Estate Rental Market Overview</h2>After a year of remarkable growth estimated at 23–30 percent, rent properties in Dubai's upscale neighborhoods are expected to rise by up to 20 percent in 2024. Real estate experts expect the upswing to continue for many reasons, including the city’s growing appeal as a haven for the wealthy, increased investor appetite, an influx of skilled workers, and population growth.<h2 class="">Factors Driving Rental Price Trends</h2>They explained that rental prices will continue to rise if net migration to Dubai remains higher than the rate at which new apartments are allocated. Rental price trends in 2024 could be driven by factors such as the increasing number of people opting to buy rather than <a href="https://inchbrick.com/rent-properties-in-dubai" target="_blank">rent properties in Dubai</a> and the rising demand for real estate as an attractive investment opportunity.<h2 class="">Projections by Real Estate Experts</h2>Ilnara Muzafyarova, head of the real estate management company Colife, says that after a sharp increase in rental prices of 23 percent annually in the first half of 2023 and a year-end forecast of around 30 percent, the upward trend appears strong. Muzafyarova projected that short-term rentals (up to six months) will increase by 20 percent from 2023, while long-term rentals (more than six months) will increase by 15 percent. This is supported by the natural expansion of the market, which also resulted in a 15% increase in apartment prices between mid-2022 and mid-2023.<h2 class="">Market Predictions by S&amp;P and CBRE</h2>S&amp;P predicted in November 2023 that house prices would rise by 5.0% to 7.0% in 2024. According to Tatiana Leskova, Associate Director of Corporate Ratings at S&amp;P, there are no signs that the <a href="https://inchbrick.com/dubai-property-market" target="_blank">Dubai real estate property market</a> will weaken this year. According to analysts at real estate consultancy CBRE, rent properties in Dubai rose by around 42% in January 2020, while property prices increased by around 33%. Similar trends can also be seen in villa rents, which now average $88,400 per year, having risen by 19.2% in November alone.<h2 class="">Key Trends in the Dubai Real Estate Market</h2>According to experts, the Dubai real estate market is thriving, as evidenced by the increasing momentum in rents, the rise in property values associated with the construction of new high-rise buildings, and a sharp increase in real estate transactions.<h2 class="">Demand Dynamics and Housing Preferences</h2>According to real estate consultancy Asteco, growth in the rental market in Dubai gradually slowed in the third quarter. With rental increases for <a href="https://inchbrick.com/residential-properties/apartments-for-sale-in-dubai" target="_blank">apartments,</a> <a href="https://inchbrick.com/residential-properties/villa-for-sale-in-dubai" target="_blank">villas</a>, and offices of 3.0 percent, 2.0 percent, and 4.0 percent respectively in the three months, there has been a noticeable slowdown. According to Asteco, the changes were 18%, 19%, and 29% respectively on an annualized basis. <img src="https://cdn.inchbrick.com/upload-editor-file/1713594351833_98f1871e-bbca-4778-ba87-a1bb78e1a732.jpeg" alt="Rent properties in Dubai"> 
<h2 class="">Investment Considerations</h2>In conclusion, for individuals considering investing in real estate in Dubai, it is crucial to stay informed, conduct thorough research, and seek guidance from industry experts. While a projected 20% rent increase is a positive sign, it would be wise to consider the long-term sustainability of the market, and potential risks, and align investment strategies with personal financial goals. Dubai’s real estate market offers opportunities, but informed decisions remain crucial for investors seeking success in this dynamic and booming industry.

Rents in Dubai are expected to rise 20 percent by 2024

<h1 class="">Apartments were the most popular choice with 65 percent of sales, followed by villas/townhouses at 26 percent and commercial/other properties at 9 percent </h1>Dubai’s real estate market reached a new all-time high in October with sales of AED 24.24 billion. This is according to a new report by real estate giant Inchbrick Realty
The secondary market led the way with 79 percent of total sales and an impressive 5,190 transactions.
Apartments were the top choice for buyers, accounting for 65 percent of sales, followed by villas/townhouses at 26 percent and commercial/other properties at 9 percent. <img src="https://cdn.inchbrick.com/upload-editor-file/1701345731462_cbd1851e-b5de-49e6-a80f-85581a9ce9f5.jpg" style="width: 1324px;"><h2 class="">Affordable properties in Dubai's</h2><ul><li>With a 73.2 percent share of sales, properties priced below AED 3 million proved to be the most popular, indicating a strong demand for affordable housing options in the city, the report said.</li><li>The rental market also proved robust with 40,840 transactions. The market was dominated by apartment rentals, but villa and townhouse rentals were also very active.</li><li>Despite stable rental prices month-on-month, there has been a notable increase of 20 percent since October 2022, which indicates rising demand for rental properties.</li><li>Inch &amp; Brick Realty reported a buoyant month with a notable increase in new customer sign-ups, which increased by 64 percent.</li><li>Residential listings also saw a healthy 36 percent increase in apartment listings, while viewings were up 20 percent. </li><li>Areas such as Dubai South and Jumeirah Village Circle are growing in popularity, with sales in the AED 3 to 5 million range skyrocketing 109 percent year-on-year.</li></ul><h2 class="">Apartments that Show High cSales Figures</h2><ul><li>In addition, the highest sales figures were recorded for apartments in <a href="https://inchbrick.com/location-in-dubai/downtown-dubai" target="_blank">Downtown Dubai</a>, <a href="https://inchbrick.com/location-in-dubai/dubai-marina" target="_blank">Dubai Marina</a>, and Dubai Hills, while villas/townhouses in The Springs, <a href="https://inchbrick.com/location-in-dubai/arabian-ranches" target="_blank">Arabian Ranches</a>, and Reem were in high demand.</li><li>According to the report, there was an almost even split between buyers with cash and those with finance, with cash transactions having a slight advantage at 52 percent. </li><li>The rental market is showing signs of easing as landlords offer flexible payment terms and new rental opportunities have been created in the suburbs, giving tenants more options.
</li><li>The overall market has seen a surge in demand, as evidenced by a significant increase in the number of new rental applicants and viewings.
</li><li>Rental prices for villas/townhouses increased by 2.8 percent, while <a href="https://inchbrick.com/rent-properties-in-dubai" target="_blank">rental prices for apartments</a> rose by 3.6 percent.</li></ul>

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Rents in Dubai are expected to rise 20 percent by 2024

Dubai real estate market hits record $6.5 billion ...