Dubai Rental Market in October Sees 42,076 Lease Transactions

The latest data released by real estate consultancy Betterhomes shows that Dubai’s rental market recorded 42,076 lease transactions in October. While this reflects a 15% decrease compared to last year, the emirate remains attractive, and a shift in tenant preference is noticeable.

Types of Rental Contracts

The new contracts accounted for 41% of the leases, while renewals dominated with 59%. The top growth hotspots for apartments, villas and townhouses come out to be Al Sufouh, Motor City and Dubai South, respectively. These areas consequently highlight the most in demand rental zones.

The average rent of an apartment in al Safouh is 125,200 dirhams, while in Motor City, villas average at approximately AED 316,600.

Top Rental Communities

The most sought after rental communities remain highly attractive:

• Apartments: Dubai Marina, Business Bay and Jumeirah Lake Towers dominate tenant preferences.
• Villas: The top options are Arabian Ranches 3, Damac Hills and Dubai Hills 2.

Betterhomes also reported a 61% increase in rental inquiries compared to last year, reflecting the growing appeal of these communities.

Average Rental Prices

Data indicates the following average rental prices in Dubai’s prime communities:

• Apartments: AED 120,000
• Townhouses: AED 159,000
• Villas: AED 401,000

October saw 19,413 transactions in the sales market, which is an increase of 77% on a yearly basis. The total value of transactions reached AED 50.28 billion, while the average price per square foot increased by 17% to reach AED 1,473.

Off-Plan Properties Lead the Market

Off-plan properties accounted for 67% of total sales, showcasing their strong appeal to buyers seeking secure stakes in Dubai’s future developments.

Best Locations to Buy Properties in Dubai

The most popular areas to buy property:

• Apartments: Dubai Marina, Jumeirah Village Circle, and Dubai Hills Estate topped the sales.
• Villas: Jumeirah Village Circle, Dubailand, and Arabian Ranches were the top picks.

Average Property Sale Prices

According to Betterhomes, the average property sale prices were:

• Apartments: AED 1.69 million
• Townhouses: AED 2.96 million
• Villas: AED 13.54 million

Betterhomes Statement:

“With investors accounting for 77% and end users making up 23% of sales, the market reflects both local and international confidence in Dubai’s growth.”

Summary

In October, Dubai’s rental market saw 42,076 transactions, although slightly softer than last year, reflecting a dynamic and high-demand environment. The market has also seen a shift in tenant preference, with renewals now taking the largest share over new contracts. Other areas like Al Sufouh, Motor City, and Dubai South have gained prominence for different types of properties, while popular destinations such as Dubai Marina and Jumeirah Lake Towers retain their charm among tenants.

In the sales segment, a year on year increase of 77% in the number of transactions and the leading position of off-plan properties demonstrate very strong investor confidence in Dubai’s real estate market.

Source: https://www.khaleejtimes.com