Colife predicted Dubai real estate rents to Soar 20%in the new year
In Dubai، UAE، Ilnara Muzafyarova، head of Colife، a real estate management firm، predicted a 20 % jump in short-term rentals or up to 6 months in Deira، compared to 2023، and a 15 % rise for long-term or above 6 months but this is anchored by the organic growth within the market، which has also seen a 15 % increase in apartment prices from mid-2022 to mid-2023، in addition there is no evidence of a slowdown in Dubai’s real estate prices this year.
Upward pressures on rental prices
Apartments in Deira، Dubai، Ilnara Muzafyarova، head of Colife، a real estate management firm، stated that if net migration to Dubai continues to be higher than the rate that new homes are handed over، it will continue to put upward pressures on rental prices، in United Arab Emirates.
Prices and rents in prime Dubai residential areas are poised to see up to 20 % in 2024 after a year of remarkable upswing estimated to be in the range of 23 % to 30 % as property experts such as Ilnara Muzafyarova، head of Colife، a real estate management firm، predict the sustained buoyancy for multiple reasons including increased investor appetite، rising influx of professionals، population surge، and the city’s growing appeal as a haven for the wealthy and famous from all over the world.
Dubai’s real estate market to acquire another remarkable year of growth
Dubai’s real estate market is setting the plot to acquire another remarkable year of growth، followed by that 2024 is expected to have a 20% rental hike in prime residential areas as well as the city’s impression among the investors، professionals، and the wealthy combined with the continuous inflow of residents is truly contributing to Dubai’s continuing growth.
Ilnara Muzafyarova، head of Colife، a real estate management firm، indicated that factors could dictate the trajectory of rents in Dubai in 2024 as more residents are opting to buy rather than renting their homes، and the growing appeal of property as an attractive investment opportunity.
A sharp uptick in rental prices in Dubai by 23 % annually
Ilnara Muzafyarova، head of Colife، a real estate management firm، explained that after a sharp uptick in rental prices in Dubai by 23 % annually in the first half of 2023، and a year-end projection of around 30 %، the upward trend appears strong.
Ilnara Muzafyarova، head of Colife، a real estate management firm said that in November 2023، S&P projected a 5.0 % to 7.0 % increase in house prices prices in Dubai during 2024 and Tatiana Leskova، associate director of Corporate Ratings at S&P، affirmed that there is no evidence of a slowdown in Dubai’s real estate prices this year.
Rents in Dubai have risen by 42 % since January 2020
Analysts at real estate consulting company CBRE said rents in Dubai have risen by approximately 42 % since January 2020، while house prices have increased by around 33 %، while villa rents have also experienced a similar trend، reaching an average of more than $88 thousand per year، with a 19.2 % rise in average rent recorded in November last year، according to Ilnara Muzafyarova، head of Colife، a real estate management firm.
Ilnara Muzafyarova، head of Colife، a real estate management firm، assured that the upward momentum in rents reflects the vibrancy of Dubai’s real estate market، with property values escalating alongside the operational high-rise buildings and property transactions surging with a notable 21.2 % increase in monthly income to $2،970 over the past year for the owner of a one-bedroom unit located in Dubai Marina and owners can anticipate even heftier returns in the vicinity of $3،415 per month in 2024.
Dubai’s population to grow to 5.8 million by 2040
Dubai’s population، as of July 2023، stood at 3،604،030 people، up from 3،515،264 in July 2022، according to the Dubai Statistical Centre. As per Dubai’s Development Master Plan، the city’s population is projected to grow to 5.8 million by 2040.
Realty experts believe that given the continued influx of global professionals to Dubai، coupled with its population growth a sustained demand for residential space can be expected and، the Dubai rental market has seen a gradual moderation in growth rate in the third quarter.
Definite slowdown with rental gains over the three months
There is a definite slowdown with rental gains at 3.0 %، 2.0 %، and 4.0 % for apartments، villas and offices over the three months but on an annual scale، the changes stood at 18 %، 19 % and 29 %، respectively، due to the continued influx of global professionals and population growth point towards a sustained demand for residential space in the years to come.
November data in Dubai shows one-bedroom apartments witnessing the highest demand as around 36 % of people were found to search for one-bedroom apartments، while 30 % looked for two-bedroom apartments، and 24 % for studios، while 42 % looked for three bedrooms، and 35 % were searching for four-bedroom and larger options such as villas or townhouses and furnished homes were preferred by 66 % of tenants، but 32 % wanted unfurnished، 51 % looked for unfurnished، and 48 % sought furnished listings in villas/townhouses.
Succeeding of Dubai’s real estate market is due to increased investor appetite
The repeatedly succeeding characteristic of Dubai’s real estate market is due to increased investor appetite، a rising inflow of professionals، population increase، and the city’s growing reputation as a haven for the wealthy and net migration exceeding the rate of new home handovers is a key factor putting upward pressure on rental prices gains which are literally standing as a reflection of Dubai real estate market’s vibrancy، with property values climbing up with high rise buildings and increasing property transactions.
Dubai’s real estate market as always remains dynamic and stronger than ever before، while the year 2024 is setting the stage for further growth as investors، residents، and professionals alike are getting attracted to the city’s offerings by making it a key player in the global real estate sector with prices are going up، people are moving in، and it’s a wild ride with no signs of slowing down but hold on tight because 2024 promises more twists and turns in Dubai’s property sector.
