One and two-bedroom apartments are highly sought after in Dubai’s rental market due to rising rental prices and the influx of new residents looking for affordable housing options. As rents climb, many tenants are downsizing to smaller units, while new arrivals are opting for budget-friendly accommodations.
A report by Engel & Völkers highlights that over two-thirds of real estate transactions in the third quarter of 2024 involved one and two-bedroom apartments, showcasing their continued popularity.
Dubai’s Rental Market Trends
Dubai’s rental market has remained robust for four consecutive years, supported by a growing population and increasing demand for housing. Communities like Jumeirah Village Circle (JVC) are leading the market, thanks to their affordability and excellent connectivity, making them a favorite among expats. Other established areas such as Dubai Silicon Oasis, Dubai Marina, Business Bay, and Emirates Living are also in high demand.
Despite many tenants renewing their leases or purchasing homes, rental prices continue to rise. As of the third quarter of 2024, average annual rents were:
- Studio apartments: Dh38,428
- One-bedroom apartments: Dh58,812
- Two-bedroom apartments: Dh84,589
- Three-bedroom apartments: Dh145,149
- Four, five, and six-bedroom units: Dh242,063, Dh356,928, and Dh793,971, respectively.
Population Growth Drives Demand
Dubai’s population has grown by over 400,000 in the last four years, reaching 3.82 million by 2024, according to the Dubai Statistics Centre. This steady increase has brought professionals, investors, and high-net-worth individuals to the emirate, further driving demand for rental properties.
Why Dubai Stands Out for Property Investment
Real estate consultancy Betterhomes emphasizes that Dubai’s property market offers excellent value and unmatched investment potential compared to global cities. With rental yields of up to 7.0%, Dubai outperforms cities like Hong Kong, Singapore, and Tokyo, which offer lower yields and cater primarily to ultra-high-net-worth buyers.
“Dubai stands out for its diverse expatriate population, world-class infrastructure, and ambitious developments, making it a vibrant hub for property investors,” Betterhomes noted.
With competitive property prices and high returns, Dubai continues to solidify its position as a premier destination for real estate investment.
