GoldCoast Uae

Dubai real estate set to jump 10% in remainder of the year

Expected Rental Growth in 2024

Even as rents in Dubai increased around 10 percent in the first half of this year, industry executives anticipate a similar rise in the second half of 2024. This trend continues the post-pandemic increase driven by population growth, the influx of high-net-worth individuals, and economic expansion creating new job opportunities.

Lewis Allsopp, chairman of Allsopp and Allsopp, projected continued rental growth for the remainder of 2024 and into 2025. He stated:

Positive Outlook for Dubai Real Estate Market in 2024

With a 10 percent increase at the beginning of 2024, there is no reason to think that we won’t see similar growth for the rest of the year. With more handovers expected in the third and fourth quarters, we anticipate continued supply and steady growth of 5-10 percent over the next six months.”

Allsopp noted that more than 10,000 new units are expected in Q2 alone. This increased supply is crucial to accommodate the ongoing population growth, with over 30,000 new residents moving to Dubai in the first five months of 2024. A new report also suggests that over 6,700 millionaires will enter the city, further fueling both population growth and the real estate market.

 

As the number of residents continues to climb, we will see more units being handed over to meet the rising demand. Landlords are also offering flexible payment options, such as multiple cheques, which would help tenants keep pace with the rising market,” added Allsopp.

2024 Performance

So far in H1 2024, average rents across the city have seen a 15.7 percent increase compared to the same period in 2023.Apartments and townhouses both saw an average increase of just below 15 percent, while villas recorded an average increase of 18 percent. This average
increase includes units and areas that may have been below the market average
until the updated Rera Index was implemented in March this year, which likely brought
previously undervalued units closer to the market average.

Areas with the Highest Rental Increases

Data from Allsopp & Allsopp indicates that areas witnessing the highest increases in the first half of 2024 included Jumeirah Beach Residence (JBR), Town Square, Dubai Production City, Dubai Healthcare City 2, and Meydan, with a 21 to 22 percent jump in rentals. Additionally, Dubai South’s average rents increased by about 38 percent compared to H1 last year, following the announcement of the new Al Maktoum Airport.

 

“In luxury communities such as Jumeirah Islands, average rents saw a 43 percent increase, reaching Dh500,000 in H1 2024 compared to Dh350,000 last year. Similarly, Al Barari saw average rental prices rise from about Dh300,000 last year to approximately Dh400,000 in H1 this year, marking a 39 percent increase,” said Allsopp.

 

Bramley highlighted strong performers in H1 2024, such as Tilal Al Ghaf, where rents grew by 21 percent, Dubai Hills Estate (14 percent), The Villa Project (12 percent), and Dubai Creek Harbour (11 percent), all experiencing an increase of over 10 percent in average rental price per square foot.