Rental prices in Dubai could increase by 20% in 2024

Investors who have property in Dubai could make good profits this year, as rental prices are rising steadily. In 2023, long-term rental prices increased by 27%, and experts believe that the upward trend in rental prices will continue. Dubai is one of the most popular places to live, due to its wide range of residences, its developed infrastructure, plenty of exclusive amenities, and good conditions for investment.

Analysts believe that in 2024, the cost of short-term rentals will increase by 20%, and long-term rentals by 15%. The increase in rental prices is influenced by the increase in the value of real estate, the number of projects being implemented, and the increase in the number of transactions. According to the Dubai Master Plan 2040, the emirate's population should grow to 5.8 million people. Therefore, the demand for real estate and the interest of investors in housing will grow steadily.

The profitability of renting property in prestigious areas of Dubai allows investors to receive a high income. For example, renting out a one-bedroom apartment in Dubai Marina can generate AED 10.7K (USD 2.9K) per month, which is 21% more than the rental price just a year earlier. In 2024, this type of real estate in Dubai Marina could fetch up to AED 12.5K (USD 3.4K) per month.

More and more professionals from all over the world are moving to Dubai who are interested in renting property here. They are attracted by the opportunity for career growth, competitive salaries, a good quality of life, and the warm climate. An increase in population affects the cost of rent, which in turn, increases the demand and housing prices. Given these factors, the upward trend in rental prices within the Dubai real estate market in 2024 will continue.