Dubai Career Diary

As Dubai’s economy continues to boom, rent prices are expected to rise by another 10% in the second half of 2024, according to industry experts. This follows a similar increase in the first half of the year, driven by a growing population, high-net-worth individuals, and a thriving job market.

Rental Market Performance

In the first half of 2024, certain communities saw rent hikes of up to Dh150,000. Jumeirah Beach Residence (JBR), Town Square, Dubai Production City, Dubai Healthcare City 2, and Meydan topped the list with 21-22% increases in rentals. Dubai South saw a significant 38% jump in average rents, likely due to the expected increase in demand following the announcement of the new Al Maktoum Airport.

Luxury Communities Lead the Way

High-end communities like Jumeirah Islands and Al Barari saw remarkable rent increases, with average prices reaching Dh500,000 and Dh400,000 respectively. Other top performers include Tilal Al Ghaf, Dubai Hills Estate, The Villa Project, and Dubai Creek Harbour, with rent growth ranging from 11% to 21%.

Expert Insights

Industry experts believe that the second half of 2024 will see a steady and gradual rental growth, driven by increasing supply and demand. “More supply will be coming into the market, with over 10,000 expected in Q2 alone,” said Lewis Allsopp, chairman of Allsopp and Allsopp. “The increase in supply is crucial as we expect to see further population growth.”

What This Means for Tenants and Landlords

With rent prices on the rise, tenants may need to adjust their budgets and consider flexible payment options, such as multiple cheques. Landlords, on the other hand, can expect higher returns on their investments. As the rental market continues to evolve, it’s essential for both parties to stay informed and adapt to the changing landscape.

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