Dubai housing rental forecast: experts expect up to 20% growth in 2024

As Dubai continues its rapid growth, the real estate market is set for another bustling year with experts predicting a significant rise in housing rental prices for 2024. Following a surge in rental prices by 23% annually in the first half of 2023, and an year-end projection nearing 30%, the upward trend appears unwavering according to Ilnara Muzafyarova, Head of Colife, a distinguished figure in Dubai’s real estate management sector.

“We have analyzed the numbers, and since the start of this year, long-term rental prices have increased by 27%. There was a spike of up to 30% for short-term rentals in October when the low season ended and the high season began,” Muzafyarova explained. These increases reflect the vitalizing tempo of Dubai’s real estate market, with property values escalating alongside the operational high-rise buildings and property transactions surging.

For 2024, Muzafyarova reveals, “We’re forecasting a 20% jump in short-term rentals (up to 6 months) compared to 2023, and a 15% rise for long-term ones (over 6 months).” This is anchored by the organic growth within the market, which has also seen a 15% rise in apartment prices from mid-2022 to mid-2023.

The rental market in Dubai is buoyant with the continuous inflow of international professionals seeking opportunities, which, as Muzafyarova highlights, maintains a “consistently high” demand for properties. “However, the majority of clients who secure apartments through our service, are planning to call them home for more than 6 months and even a full year,” she added.

These optimistic projections are exemplified by a 1-bedroom unit in Dubai Marina managed by Colife, which experienced a notable 21.2% increase in monthly income to $2,970 over the past year. Going forward, owners can anticipate even heftier returns in the vicinity of $3,415 per month come 2024.

The continued influx of global professionals to Dubai, coupled with its population growth – which has skyrocketed to 3,604,030 people as of July 2023 – heralds a sustained demand for residential space. Looking to the future, especially considering Dubai’s Development Master Plan envisaging a population of 5.8 million by 2040, the metropolis shows no signs of rental market escalation slowing down, possibly making now the prime time for investors to dive into Dubai’s property rental scene.