403
Sorry!!
Error! We're sorry, but the page you were
looking for doesn't exist.
Harbor Real Estate Report 2024 Dubai’s Rental Market Keeps Pace with Population Growth and Strengthens Economic Boom
(MENAFN- Outlook entertainment) Dubai, United Arab Emirates, 16 Feb 2025: The Harbor Real Estate report highlights key developments and changes in Dubai’s residential and commercial rental sector during 2024, focusing on price trends, contract volume and value, and the top-performing areas in the market.
Dubai’s residential and commercial rental market continued its growth trajectory in 2024, with notable price increases across several areas. This upward trend was driven by strong demand, continuous population growth, economic expansion, and a rising number of businesses and commercial licenses. These factors have positively impacted the retail and commercial space sectors, further reinforcing Dubai’s position as a thriving business hub.
The number of residential lease contracts grew by 2.5%, reaching 535,194 contracts by the end of 2024, compared to 522,627 contracts in 2023.
Rental prices saw an increase across all unit types, ranging from 3.6% for four-bedroom units to 17% for studio apartments. One-bedroom units recorded a 15% increase, two-bedroom units rose by 11.8%, three-bedroom units by 8.6%, and five-bedroom units saw a 10% growth.
On the commercial side, the sector recorded over 237,000 lease contracts, with a total value of AED 25 billion. The average contract value stood at AED 103,000, with an average rental rate of AED 162 per square foot.
Mohand Alwadiya, CEO of Harbor Real Estate, said: Harbor Real Estate report offers an in-depth and insightful analysis of Dubai’s rental market performance in 2024 and its broader impact on the real estate and economic landscape. Without a doubt, this sector is expected to sustain its strong momentum in the coming years, remaining a key driver of growth in the emirate’s property market. This resilience is further reinforced by the continuous influx of expatriates and professionals seeking to establish their homes and businesses in Dubai, whether through residential or commercial leasing.
Alwadiya added: Based on Harbor Real Estate report, the key factors supporting the continued growth of the rental sector include:
1. Increasing demand from middle-income earners and newcomers to Dubai: This segment constitutes a significant portion of the population. With each new wave of expatriates, the demand for rental housing continues to rise.
2. The vital role of rentals in the commercial and hospitality sectors: As businesses expand and tourism flourishes, the demand for office spaces, retail outlets, and serviced apartments remains strong.
3. The direct conection between rental yields and property prices: Rental returns significantly influence investor decisions. Higher yields make property purchases more attractive, contributing to price stability and market growth.
4. Urban planning and future visions: Dubai’s Urban Plan 2040, along with strategic initiatives and the Dubai Real Estate Strategy 2033, collectively enhance sustainability and attract more residents and investors.
5. Legislative and regulatory advancements: The presence of the Smart Rent Index, the Rental Dispute Resolution Center, and building classification systems contribute to greater transparency, making Dubai’s real estate market more appealing for investment.
Average Residential Rental Prices by Area (AED per sq. ft.)
Villas & Townhouses
Jumeirah Bay Island recorded the highest villa and townhouse rental prices in Dubai, averaging AED 343 per sq. ft., followed by Palm Jumeirah at AED 233 per sq. ft. and Al Markadh in third place with AED 169 per sq. ft.. Mohammed Bin Rashid City ranked fourth at AED 153 per sq. ft., while Jumeirah Islands secured the fifth position at AED 129 per sq. ft.. In sixth place, Me’aisem recorded an average of AED 129 per sq. ft., followed by Sobha Hartland at AED 128 per sq. ft.. Dubai Hills Estate ranked eighth at AED 127 per sq. ft., while Al Barari and Dubai Marina closed the top ten with AED 123 per sq. ft. and AED 120 per sq. ft., respectively.
Residential Apartments
Jumeirah Bay Island recorded the highest apartment rental prices in Dubai, averaging AED 455 per sq. ft., followed by Bluewaters Island at AED 267 per sq. ft. and Dubai Harbour in third place with AED 195 per sq. ft.. Pearl Jumeirah ranked fourth at AED 190 per sq. ft., while Me’aisem secured the fifth position with an identical AED 190 per sq. ft..
In sixth place, Uptown Dubai recorded an average of AED 170 per sq. ft., followed by Madinat Jumeirah Living at AED 161 per sq. ft.. Dubai Water Canal ranked eighth at AED 161 per sq. ft., while La Mer and Seih Shuaib closed the top ten with AED 153 per sq. ft. and AED 147 per sq. ft., respectively.
Top Areas by Number of Residential Lease Contracts
Deira topped the list of areas with the highest number of registered residential lease contracts, recording 47,928 contracts, accounting for 9% of the total. It was followed by Bur Dubai in second place with 44,496 contracts (8.3%), and Al Nahda in third with 23,684 contracts (4.4%). Al Qusais ranked fourth with 22,592 contracts (4.2%), while Jumeirah Village Circle (JVC) secured the fifth position with 21,014 contracts (3.9%).
International City ranked sixth with 16,978 contracts (3.2%), followed by Dubai Silicon Oasis with 16,978 contracts (3.2%). Business Bay came in eighth with 15,245 contracts (2.9%), while Al Barsha ranked ninth with 14,887 contracts (2.8%). Dubai Marina closed the top ten with 14,329 contracts (2.7%).
Distribution of Residential Lease Contracts by Price Range
Lease contracts valued at less than AED 50,000 dominated the market, accounting for 37.5% of the total. Contracts priced between AED 50,000 and AED 80,000 ranked second with a 31.8% share, followed by those in the AED 80,000 to AED 120,000 range, which represented 14.9% of the market.
In fourth place, contracts priced between AED 120,000 and AED 160,000 accounted for 6.9%, while contracts exceeding AED 200,000 made up 5.2% of the total. Lastly, contracts ranging between AED 160,000 and AED 200,000 also represented 5.2% of the market.
Distribution of Residential Lease Contracts by Property Type (Volume & Value)
Studio apartments recorded 83,587 contracts, with a total value of AED 3.162 billion. One-bedroom units led in contract volume with 185,557 contracts, amounting to AED 10.67 billion. Two-bedroom units followed, reaching 153,650 contracts with a total value of AED 12.67 billion.
Three-bedroom units recorded 54,377 contracts, valued at AED 7.537 billion, while four-bedroom units reached 15,448 contracts, totaling AED 3.67 billion. Meanwhile, five-bedroom units accounted for 4,793 contracts, with a total value of AED 1.7 billion. Lastly, six-bedroom units recorded 958 contracts, reaching a total value of AED 569 million.
Distribution of Commercial Lease Contracts by Area
Deira emerged as the leading area for commercial lease contracts, with an impressive 85,723 contracts, accounting for 36.1% of the total market share. It was followed by Bur Dubai in second place with 18,297 contracts (7.7%), while Dubai Investment Park ranked third with 18,205 contracts (7.7%), reflecting strong demand in these strategic locations.
Business Bay followed in fourth place, with 15,094 contracts (6.4%), highlighting its growing popularity as a key business hub. Al Quoz rounded out the top five with 14,625 contracts (6.2%).
Distribution of Commercial Lease Contracts by Price Range
In terms of contract value, leases under AED 50,000 dominated the market, accounting for a substantial 57.2% of the total number of commercial lease contracts, with 135,564 contracts. Following this, contracts in the AED 50,000 to AED 80,000 range ranked second, representing 13.7% of the market with 32,469 contracts.
Contracts priced between AED 80,000 and AED 120,000 came in third with 10.4% of the market share (24,648 contracts), while leases exceeding AED 200,000 secured fourth place with 9.4% (22,278 contracts). AED 120,000 to AED 160,000 contracts accounted for 5.8% of the market (13,746 contracts), while leases in the AED 160,000 to AED 200,000 range rounded out the top six with 3.5% (8,295 contracts).
Robust Performance of the Commercial Leasing Sector
The commercial leasing sector in Dubai exhibited strong growth throughout 2024, underpinned by sustained demand for office and retail spaces. Rental rates for office and retail properties increased by 4%, while warehouse rents experienced a more significant surge of 19%, reflecting heightened demand within the industrial segment.
In summary, Dubai’s commercial leasing market has continued its positive trajectory, driven by the expanding demand for both office and commercial spaces. This trend further reinforces the city's standing as a premier business and investment hub on the global stage.
Distribution of Commercial Lease Contracts by Type
Retail stores (shops) led the list in terms of contract value, with a total of AED 9.2 billion derived from 59,739 contracts. The average contract value was AED 154,000 (AED 259 per square foot). Following closely, office spaces ranked second, generating AED 8.9 billion through 146,129 contracts, with an average rental value of AED 61,000 (AED 101 per square foot).
In third place, warehouses recorded a value of AED 1.57 billion from 8,551 contracts, with an average rental price of AED 184,000 (AED 46 per square foot).
Dubai’s residential and commercial rental market continued its growth trajectory in 2024, with notable price increases across several areas. This upward trend was driven by strong demand, continuous population growth, economic expansion, and a rising number of businesses and commercial licenses. These factors have positively impacted the retail and commercial space sectors, further reinforcing Dubai’s position as a thriving business hub.
The number of residential lease contracts grew by 2.5%, reaching 535,194 contracts by the end of 2024, compared to 522,627 contracts in 2023.
Rental prices saw an increase across all unit types, ranging from 3.6% for four-bedroom units to 17% for studio apartments. One-bedroom units recorded a 15% increase, two-bedroom units rose by 11.8%, three-bedroom units by 8.6%, and five-bedroom units saw a 10% growth.
On the commercial side, the sector recorded over 237,000 lease contracts, with a total value of AED 25 billion. The average contract value stood at AED 103,000, with an average rental rate of AED 162 per square foot.
Mohand Alwadiya, CEO of Harbor Real Estate, said: Harbor Real Estate report offers an in-depth and insightful analysis of Dubai’s rental market performance in 2024 and its broader impact on the real estate and economic landscape. Without a doubt, this sector is expected to sustain its strong momentum in the coming years, remaining a key driver of growth in the emirate’s property market. This resilience is further reinforced by the continuous influx of expatriates and professionals seeking to establish their homes and businesses in Dubai, whether through residential or commercial leasing.
Alwadiya added: Based on Harbor Real Estate report, the key factors supporting the continued growth of the rental sector include:
1. Increasing demand from middle-income earners and newcomers to Dubai: This segment constitutes a significant portion of the population. With each new wave of expatriates, the demand for rental housing continues to rise.
2. The vital role of rentals in the commercial and hospitality sectors: As businesses expand and tourism flourishes, the demand for office spaces, retail outlets, and serviced apartments remains strong.
3. The direct conection between rental yields and property prices: Rental returns significantly influence investor decisions. Higher yields make property purchases more attractive, contributing to price stability and market growth.
4. Urban planning and future visions: Dubai’s Urban Plan 2040, along with strategic initiatives and the Dubai Real Estate Strategy 2033, collectively enhance sustainability and attract more residents and investors.
5. Legislative and regulatory advancements: The presence of the Smart Rent Index, the Rental Dispute Resolution Center, and building classification systems contribute to greater transparency, making Dubai’s real estate market more appealing for investment.
Average Residential Rental Prices by Area (AED per sq. ft.)
Villas & Townhouses
Jumeirah Bay Island recorded the highest villa and townhouse rental prices in Dubai, averaging AED 343 per sq. ft., followed by Palm Jumeirah at AED 233 per sq. ft. and Al Markadh in third place with AED 169 per sq. ft.. Mohammed Bin Rashid City ranked fourth at AED 153 per sq. ft., while Jumeirah Islands secured the fifth position at AED 129 per sq. ft.. In sixth place, Me’aisem recorded an average of AED 129 per sq. ft., followed by Sobha Hartland at AED 128 per sq. ft.. Dubai Hills Estate ranked eighth at AED 127 per sq. ft., while Al Barari and Dubai Marina closed the top ten with AED 123 per sq. ft. and AED 120 per sq. ft., respectively.
Residential Apartments
Jumeirah Bay Island recorded the highest apartment rental prices in Dubai, averaging AED 455 per sq. ft., followed by Bluewaters Island at AED 267 per sq. ft. and Dubai Harbour in third place with AED 195 per sq. ft.. Pearl Jumeirah ranked fourth at AED 190 per sq. ft., while Me’aisem secured the fifth position with an identical AED 190 per sq. ft..
In sixth place, Uptown Dubai recorded an average of AED 170 per sq. ft., followed by Madinat Jumeirah Living at AED 161 per sq. ft.. Dubai Water Canal ranked eighth at AED 161 per sq. ft., while La Mer and Seih Shuaib closed the top ten with AED 153 per sq. ft. and AED 147 per sq. ft., respectively.
Top Areas by Number of Residential Lease Contracts
Deira topped the list of areas with the highest number of registered residential lease contracts, recording 47,928 contracts, accounting for 9% of the total. It was followed by Bur Dubai in second place with 44,496 contracts (8.3%), and Al Nahda in third with 23,684 contracts (4.4%). Al Qusais ranked fourth with 22,592 contracts (4.2%), while Jumeirah Village Circle (JVC) secured the fifth position with 21,014 contracts (3.9%).
International City ranked sixth with 16,978 contracts (3.2%), followed by Dubai Silicon Oasis with 16,978 contracts (3.2%). Business Bay came in eighth with 15,245 contracts (2.9%), while Al Barsha ranked ninth with 14,887 contracts (2.8%). Dubai Marina closed the top ten with 14,329 contracts (2.7%).
Distribution of Residential Lease Contracts by Price Range
Lease contracts valued at less than AED 50,000 dominated the market, accounting for 37.5% of the total. Contracts priced between AED 50,000 and AED 80,000 ranked second with a 31.8% share, followed by those in the AED 80,000 to AED 120,000 range, which represented 14.9% of the market.
In fourth place, contracts priced between AED 120,000 and AED 160,000 accounted for 6.9%, while contracts exceeding AED 200,000 made up 5.2% of the total. Lastly, contracts ranging between AED 160,000 and AED 200,000 also represented 5.2% of the market.
Distribution of Residential Lease Contracts by Property Type (Volume & Value)
Studio apartments recorded 83,587 contracts, with a total value of AED 3.162 billion. One-bedroom units led in contract volume with 185,557 contracts, amounting to AED 10.67 billion. Two-bedroom units followed, reaching 153,650 contracts with a total value of AED 12.67 billion.
Three-bedroom units recorded 54,377 contracts, valued at AED 7.537 billion, while four-bedroom units reached 15,448 contracts, totaling AED 3.67 billion. Meanwhile, five-bedroom units accounted for 4,793 contracts, with a total value of AED 1.7 billion. Lastly, six-bedroom units recorded 958 contracts, reaching a total value of AED 569 million.
Distribution of Commercial Lease Contracts by Area
Deira emerged as the leading area for commercial lease contracts, with an impressive 85,723 contracts, accounting for 36.1% of the total market share. It was followed by Bur Dubai in second place with 18,297 contracts (7.7%), while Dubai Investment Park ranked third with 18,205 contracts (7.7%), reflecting strong demand in these strategic locations.
Business Bay followed in fourth place, with 15,094 contracts (6.4%), highlighting its growing popularity as a key business hub. Al Quoz rounded out the top five with 14,625 contracts (6.2%).
Distribution of Commercial Lease Contracts by Price Range
In terms of contract value, leases under AED 50,000 dominated the market, accounting for a substantial 57.2% of the total number of commercial lease contracts, with 135,564 contracts. Following this, contracts in the AED 50,000 to AED 80,000 range ranked second, representing 13.7% of the market with 32,469 contracts.
Contracts priced between AED 80,000 and AED 120,000 came in third with 10.4% of the market share (24,648 contracts), while leases exceeding AED 200,000 secured fourth place with 9.4% (22,278 contracts). AED 120,000 to AED 160,000 contracts accounted for 5.8% of the market (13,746 contracts), while leases in the AED 160,000 to AED 200,000 range rounded out the top six with 3.5% (8,295 contracts).
Robust Performance of the Commercial Leasing Sector
The commercial leasing sector in Dubai exhibited strong growth throughout 2024, underpinned by sustained demand for office and retail spaces. Rental rates for office and retail properties increased by 4%, while warehouse rents experienced a more significant surge of 19%, reflecting heightened demand within the industrial segment.
In summary, Dubai’s commercial leasing market has continued its positive trajectory, driven by the expanding demand for both office and commercial spaces. This trend further reinforces the city's standing as a premier business and investment hub on the global stage.
Distribution of Commercial Lease Contracts by Type
Retail stores (shops) led the list in terms of contract value, with a total of AED 9.2 billion derived from 59,739 contracts. The average contract value was AED 154,000 (AED 259 per square foot). Following closely, office spaces ranked second, generating AED 8.9 billion through 146,129 contracts, with an average rental value of AED 61,000 (AED 101 per square foot).
In third place, warehouses recorded a value of AED 1.57 billion from 8,551 contracts, with an average rental price of AED 184,000 (AED 46 per square foot).
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
Comments
No comment