Dubai Real Estate: Rent To Remain Unchanged For Villas But Apartments To See Price Hike, Expert Says

Dubai

People who want to buy or sell a home have always been interested in the Dubai real estate market. People come from all over the world to live in the city because of its modern megastructures, high-class lifestyle, and business-friendly government. It’s important to pay attention to Dubai real estate rent in market because they show how healthy and in-demand the market is.

It is thought that the rent for houses in downtown Dubai will stay the same in 2024, while the rent for flats will go up. There are a lot of things that affect this prediction, such as market instability, product prices, and how the government makes policies.

Villas: Stable Rental Prices

As soon as villas were built in Dubai, the demand for them went through the roof. Expats, especially families and wealthy people, made them their top choice. Many of these types of apartments are very large and well-designed. They offer a great place to live with privacy, safety, and many other benefits for people who want to live a high-class life.

The cost of renting a villa has gone up by 81% since the pandemic. It now costs 398,700 AED a year, which is the most in ten years. Apartments, on the other hand, cost 82,000 AED a year and have grown by 49% in 3 years, but this number is still too low for growth.

Experts say that house rental prices in Dubai might not go up this year, but they also don’t think they will go down either. No matter what, here are the reasons. Really, there aren’t many houses in the city, especially the ones that people want. Landlords can charge higher rents because there are fewer homes available, making it harder for people to find a place to live.

As part of measures to boost the economy and encourage business investment, the government wants to help the real estate market stay stable and grow. More foreign businessmen and expats could move to the area if programmes like the 10-year visa and work to make it easier to do business were in place. This could cause more people to want to buy houses.

Dubai

The security of Dubai’s real estate market and the city’s standing as a global business center are also due to these other things. Even though costs have been going up because of the COVID-19 outbreak and political problems in the area, the Dubai real estate market has been pretty strong.

Also Read: Uae: Mega Development In Rak To Create Vibrant Mixed-Use Destination

Apartments: Price Hike Expected

In 2024, the prices of homes for sale, like houses, should go down, while the rents for flats will go up. The number of flats in Dubai is higher than the number of houses. This is mostly because of the popularity of places like Dubai Marina, Downtown Dubai, and Jumeirah Lake Towers. Because there are more homes on the market, renting rates can be kept low by the extra supply.According to market analyst ValuStrat, rents in Dubai are going up at the fastest rate ever seen in the fourth quarter of 2023.

The annual growth rate for residence rent is 12.8%, with apartments seeing the most growth at 15.9%. For example, the average price of a room to rent is AED 54,000 to AED 176,000. But prices of villas went up by 9.2 percent, from AED 310,000 to AED 492,000.

It set a new record when office rents went up by a whopping 58.4 percent in just two years. It costs the most to rent an office (AED 1,454/sqm on average). The most pricey place is DIFC, which costs a huge AED 1,600/sqm.

Similarly, industrial and warehouse rents went up too, by as much as 14 percent in some places and up to 38 percent in others. From 40 to 80 sqm/sqft, you can rent a space in Al Quoz.

The fact that rents are going up many times faster than property values is a sign of how much pressure there is on demand compared to supply, the report said. It also said that the city’s growing population, businesses’ growth, people working from home, and the city’s economic recovery are some of the things that have kept occupancy and rental rates so high.

Experts say that rents for building properties in Dubai will keep going up until 2024 because the city can’t keep up with building enough homes, offices and storage places to accommodate its growing population and booming non-oil businesses.

According to Eqo Expo 2020 Dubai, the Dubai real estate market will get better in 2024. This will be a big part of these big wins and the long-term success of the economy. Since there are more people looking for apartments, rental prices are likely to go up as well.

As a result of the government’s plans to help businesses diversify and bring in foreign capital, demand is expected to rise, especially for homes and other types of housing. Plans like the Master Plan for Dubai 2040, which aim to make the city more safe and good for the environment, could make it even more appealing, which would mean that more people would move there, which would boost the demand for flats even more.

Expert Opinion-Dubai Real Estate

There will be high hopes for real estate agents in Dubai in the year 2024 when it comes to renting out homes. In particular, villa prices are likely to stay the same. On the other hand, flat prices may go up. Still, the amount of price raise will depend on a number of things, such as how the market is moving, the state of the economy, and the rules that the government has set.

The study summed up that Dubai real estate had reached a new level by the end of the year. Capital prices, rents, and the number of transactions had all reached their highest point in the fourth quarter of 2023.

Dubai
Dubai

The VPI Price Index was used to record the highest annual growth rate in home prices in 10 years, at 19.9 percent. The prices of apartments went up by 15.4 percent, and the prices of houses went up by 24.9 percent, which was the biggest rise. Communities with more appealing prices have seen the most growth in this group, such as Discovery Gardens and Dubai Silicon Oasis.

The capital value of high-end properties, on the other hand, continued its clear trend of a huge jump; it rose by 20.9 percent in the past year. Around the fourth quarter, over 12,000 nearly finished homes were sold, which was the most ever and set a record.

The sites were one of the areas that did the best. From the same time last year to this year, capital value and gross metered volume both went up by a new high 32.1% and 21.9%, respectively.

There was also a boom in the travel business, with hotel occupancy rates going from 6% to 77.2 percent and the number of foreign visitors going up by 20 percent, to an average of over 15 million people.

The good trend, which started in 2023, is expected to get even stronger next year thanks to actions taken by the government, population growth, and a stronger economic rebound, the study said.

Conclusion

Finally, 2024 seems like the best year for Dubai real estate rents because the market is likely to be stable and grow. The rent for villas probably doesn’t change, but the rent for flats seems to be going up. For whatever reason, the best way to successfully search the market and secure an appropriate and cheap renting home is with the right plan and help.


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