Dubai’s Property Sales Price and Rental Rates in 2024 

According to the latest report of Cushman and Wakefield analysis, the gap between lease renewals and new agreements has widened. These results in a dualistic rental sector hence, renters are choosing to stick around.

The rental assessment of the Real Estate Regulatory Agency shows a decrease in the prices of rental growth if renewed. Contrary to this, signing new contracts at this time costs high to the tenants.

Further, the report found a continuous decrease in the pace besides the increase in the residential lease. An increase of 19% has been found in the rental rates all over Dubai’s properties in the annual report of 2023.

Head of consultancy and research at C&W, Prathyusha Gurrapu, analyzed the continuous growth in rental prices for new contracts in 2024. Further, she proclaimed that this rise would specifically be witnessed in the eminent communities around Dubai. In addition, she added that the growing rate of residency in such prominent neighborhoods will ultimately lead to rental pressure.

The Growing Demand and Rising Rental Rates

It was found in an analysis that the property sector will continue to observe an increase in prices in 2024. Whereas, year on year 2023 sales of Dubai Properties were at a peak. Better Homes retrieved the figures according to which rental prices of Dubai apartments have surged between 20%-30%.

Further, top-notch villa or townhouse communities also increased the lease prices up to 10 and 20 percent. As per the report published last month, the rental rates of affordable communities around Dubai increased sharply. These communities include Dubai Sports City, Discovery Gardens, Jumeirah Village Circle, and Dubailand.

On the opposite hand, townhouse rents have observed an intense increase, specifically in districts like Emirates Hills, the Springs, and The Meadows, and the highest in Jumeirah Village Circle. Additionally, the RERA rental valuation certificate has been commonly used among various property owners as compared to the regulator’s rental index.

Escalation in the Property Ownership

Due to the sharp growth in rental rates, many tenants have shifted to buying residential apartments or villas. Approximately 39,400 residences in Dubai have been sold out in 2023, forming the highest rate of house sales.

The apartment handovers accounted for 83% of Dubai’s real estate sector while 17% of handovers were made for townhouses in 2023. In addition, Meydan One ranked top as 5,556 properties were sold in this district.

Furthermore, the report indicates that Aykon City topped in the sales of apartments, followed by Address Residences and Surf at Creek Beach.

In a recent consultancy analysis, Elan, Joy Townhouses, and Cherrywoods are a few of the prominent townhouse schemes that accounted for the highest handovers. Dubai is ready to witness a strong record of sales with an estimated delivery of around 65,000 residences in 2024.