Gold Strikes in Dubais Rental Market

Gold Strikes in Dubai's Rental Market: 10% Long-Term Yields and short term up to 60%

We call it "unprecedented," but given the current explosive boom, it's hardly surprising. The Hunter Jones Group reveals the list on the best properties in Dubai's best locations with a competitive rental yield for 2024. Our spotlight highlights the skyrocketing rents in the city, driven by extraordinary growth and unwavering investor confidence.

Rents in Dubai are Reaching Record Highs

Dubai's continued allure is evident in the rental rates of its villas, townhouses, and apartments, which are on track to break all previous records this year. According to a research published by Provident Property Management, the median expense of renting an apartment has increased significantly over the past year, from AED62 ($17) per square foot to over AED73 ($20) per square foot. Villas and townhouses have also seen an incredible increase, going from AED 54 (USD15) per square foot to AED76 ($21) per square foot in the same time frame.

Examining the Increase in Rent Prices in Dubai

Why is the cost of rent in Dubai rising so quickly? The vibrant real estate sector in the city, which saw an astounding $10 billion in renting activity in just the previous year, holds the key to the solution. When we dig further into the data, the figures present a fascinating overview of Dubai's rental market:

Apartment Rentals

AED11.3 billion ($3.1 billion) in short term apartment rental Dubai was collected in 2024 from the almost 173,000 apartment units that were rented. New contracts accounted for a significant amount of the total rent, contributing AED5 billion ($1.4 billion) at an average rate of AED73 ($20) per square foot.

Townhouse and Villa Rentals: Almost 20,000 townhouses and villas have been rented in 2024, indicating a strong rental market for these properties. This amounted to rent of AED3.6 billion ($980 million), of which AED1.8 billion ($490 million) came from new contracts alone.

Perspectives on Upcoming Patterns and Developing Subjects

Dubai's short term apartment rental offers a diverse range of options, with some neighborhoods offering exceptional possibilities for profitable rentals. Due to their prime locations and notable features, developing neighborhoods like Dubai South, Dubai Science Park, and Dubai Hills are seeing significant development. A market saturation in well-known locations is one risk that investors should be aware of, so they should proceed with caution.

Basically, an intelligent strategy to property selection is made possible by an awareness of the varied needs of Dubai's tenants. Discovering the ideal site is just around the corner, whether the goal is regular occupancy or building a steady tenant base. Follow along for more information and updates as we make our way through the always changing real estate landscape in Dubai.

Date: 27 Jun, 2024

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