Dubai is transforming into a "landlord's market," with rentals set to increase by 110% by 2023, according to a recent report. Last month, the number of tenants registering for rental properties increased 110% year-on-year, leading to a 91% increase in landlord listings. This trend indicates a shift toward a more landlord-friendly real estate market in the city.
The latest market report shows a significant 99% increase in rental property viewings. The total volume of rental transactions also increased by 94% in November, driven by tenants opting for flexible rental payments, particularly with four or more checks. Options with four or more checks increased by 21.4% and accounted for 31% of rental transactions.
Villa rentals saw a notable year-on-year increase of 58%, capitalizing on demand from families in both established and new communities. As tenants negotiated payment plans, new opportunities arose for both landlords and tenants.
On the sales front, top-Agentler reported a 4% higher transaction volume than in November 2021. Sellers responded to the favorable conditions by bringing 21% more properties to market compared to the previous month. New buyer and investor registrations increased by 53%, with particularly strong interest in affordable ready-made and off-plan properties, particularly those priced under AED 2 million.
2023 saw several real estate market records: The average selling price per square meter exceeded the previous peak of 2014 by 14%, reaching 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 anticipates delivery of 50,000 to 70,000 units in 2024, with demand for luxury residential developments expected to remain robust. Real estate brokers are optimistic, stating that, barring any unforeseen events, the Dubai real estate market is expected to continue setting new records after its recent all-time high well into 2024.
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