Dubai's rental market has remained highly active over the past four years, fuelled by the city's growing population.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
“One and two-bedroom apartments are in especially high demand, representing over two-thirds of transactions. Jumeirah Village Circle (JVC) continues to lead as the top transacting community, favoured by expats for its value and connectivity. Established areas like Dubai Silicon Oasis, Dubai Marina, Business Bay, and Emirates Living also remain popular. Despite a growing number of tenants opting to renew their contract or buy a property, rental prices continue to face upward pressure,” Engel & Völkers said in its quarterly report.
At the end of the third quarter, the average rent for a studio stood at Dh38,428 per year in the third quarter of 2024. Meanwhile, one, two and three-bedroom apartments cost Dh58,812, Dh84,589 and Dh145,149 per annum, respectively. The average rent for four, five and six bedrooms was around Dh242,063, Dh356,928 and Dh793,971, respectively.
The consistent rise in population since 2021 has been fuelling the surge in rentals and property prices, pushing them above record highs of 2014 level.
Population growth
According to the Dubai Statistics Centre, the emirate's population has increased by more than 400,000 to 3.82 million in the past four years, attracting professionals, investors and high-net-worth individuals from around the world.
Real estate consultancy Betterhomes said Dubai property's dynamic growth story is supported by its diverse expatriate population, robust infrastructure, and ambitious development pipeline.
“For those seeking a destination that delivers on promise and potential, Dubai stands out as the ultimate choice for property investment,” it added.
Dubai property market offers exceptional value and unparalleled investment potential when compared to other cities around the world.
“While other markets in Asia face unique dynamics, Dubai's advantages set it apart as a vibrant, forward-thinking hub for property investors,” it said, adding that cities across Asia like Hong Kong, Singapore, and Tokyo navigate market-specific characteristics that influence their appeal. Hong Kong, with its high demand and competitive landscape, offers rental yields of 2.4 per cent, though its market is increasingly focused on ultra-high-net-worth buyers.
“Amidst these evolving market conditions, Dubai has emerged as a standout destination, combining accessibility with high returns. Offering competitive property prices and rental yields of up to 7.0 per cent, the emirate significantly outperforms many global cities in value and investment potential,” said Betterhomes.