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Dubai rentals data shows demand continuing to stay strong

Dubai’s rental market saw a total of 42,076 leasing transactions in October

Published: Sun 17 Nov 2024, 7:59 PM

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Dubai’s rental market saw a total of 42,076 leasing transactions in October, recent data shows.

According to latest figures released by Betterhomes, the real estate consultancy, while slightly down by 15 per cent year-over-year, the city’s appeal remains undiminished, with notable shifts in tenant preferences.

New contracts made up 41 per cent of leases, and renewals took the lead at 59 per cent. Al Sufouh, Motor City, and Dubai South emerged as growth champions for apartments, villas, and townhouses, respectively, showcasing rental demand hotspots with Al Sufouh’s average apartment rent at Dh125,200 and Motor City villas at Dh316,6000.

Top rental communities are equally enticing. Dubai Marina, Business Bay, and Jumeirah Lake Towers are favourites for apartment seekers, while Arabian Ranches 3, Damac Hills, and Dubai Hills 2 lead villa popularity. Betterhomes also saw a 61 per cent year-over-year increase in tenant leads, underscoring the draw of these communities.

Average apartment rents in Dubai’s top communities stood at around Dh120,000, while it was at Dh159,000 for townhouses and Dh401,000 for villas, data showed.

In the sales market, October sizzled with 19,413 sales transactions, rocketing up by 77 per cent from last year. The total transaction value reached Dh50.28 billion, with the average price per square foot jumping by 17 per cent to Dh1,473 per square foot. Off-plan properties led the charge, comprising 67 per cent of total sales — a compelling choice for buyers looking to secure a stake in Dubai’s future developments.

Community-wise, Dubai Marina, Jumeirah Village Circle, and Dubai Hills Estate drew the most apartment sales, while villas found their sweet spot in Jumeirah Village Circle, Dubai Land, and Arabian Ranches.

Average sale prices stood a: Dh1.69 million for apartments, Dh2.96 million for townhouses and Dh13.54 million for villas, according to Betterhomes data.

“With investor activity at 77 per cent and end-users at 23 per cent, the sales market reflects both local and international confidence in Dubai’s growth,” a Betterhomes statement said.



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