Dubai is transforming into a “landlord’s market” as rentals are set to increase by 110% by 2023, according to a recent report. Last month, the number of tenants registering for a rental property increased by 110% compared to the previous year, leading to a 91% increase in listings from landlords. This trend indicates a shift towards a more landlord-friendly real estate market in the city.
The latest market report shows a significant increase of 99% in the number of viewings of rental properties. The total volume of rental transactions also increased by 94% in November, due to tenants opting for flexible rental payments, particularly with four or more checks. Options with 4+ checks increased by 21.4 % and accounted for 31 % of rental transactions.
Villa rentals saw a remarkable 58% annual increase, capitalizing on demand from families in both established and new communities. As the tenants negotiated payment plans, new opportunities arose for both landlords and tenants.
On the sales front, top marketeers recorded a 4% higher transaction volume than in November 2021. Sellers responded to the favorable conditions by putting 21% more properties on the market compared to the previous month. New buyer and investor registrations increased by 53%, with particular interest in affordable finished and off-plan properties, especially apartments priced below AED 2 million.
In 2023, there were several records in the real estate market: the average sales price per square meter exceeded the previous peak of 2014 by 14% and reached AED 1,257 per square meter. Despite comparisons with London, Paris and New York, Dubai remains the most affordable option.
Looking ahead to 2024, the Dubai real estate market is poised for further growth, with current indicators pointing to a continued undersupply compared to sustained demand. The report expects 50,000 to 70,000 units to be handed over in 2024, with demand for luxury residential developments likely to remain robust. Real estate marketers are optimistic, stating that barring any unforeseen events, the Dubai real estate market is likely to reach new records beyond 2024 after its recent all-time high.
