The increase in completed residential projects has led to a significant rise in the number of real estate rental transactions. In January 2024, the volume of concluded transactions jumped by 400%. This has contributed to the growing interest in property management services as owners seek to generate rental income as quickly as possible.
According to statistics, more than 47,000 residential properties were built in Dubai in 2023, which is 50% more than the year before. Major projects such as Me Do Re in JLT, Upside in Business Bay and Prive Residence in Dubai Hills were completed by the end of last year, encouraging owners to rent out their properties. The increase in the volume of lease transactions is also due to the rise in the number of sales in the secondary market.
Every year, there are more and more wealthy investors in the emirate who are interested in receiving rental income in the first month after purchase. Therefore, at the beginning of the year, the demand for property management services increased sharply. Many investors do not live in Dubai, so all the processes related to rental real estate are transferred to the hands of specialised companies.
In some areas, the cost of rental housing is showing a steady increase. For example, some residences on Palm Jumeirah are being rented at a price that exceeds last year's rates by 23%. The average rental price is expected to rise by 30% in 2024, so investor interest in the Dubai real estate market will continue to grow.
