Rents in Dubai South, E311 areas surge by up to 30% in 2024

Rents in Dubai South and communities along Sheikh Mohammed bin Zayed Road saw the highest increase in 2024, jumping up to 30 per cent, according to the latest data released by Cavendish Maxwell.

Average rents were up in most Dubai residential areas during 2024, the data revealed.

For apartments, the biggest hikes were in Dubai South, where rents were 30 per cent up in 2024 on the previous year, followed by Al Furjan (27 per cent) and Dubai Production City (24 per cent).

There were much smaller increases at Palm Jumeirah (5 per cent), Al Habtoor City (3 per cent) and Bluewaters Island (1 per cent).

While Palm Jumeirah’s apartment rental prices saw a nominal increase, it was a different story for villas, where rates were up 52 per cent in 2024. The second highest rise for villas and townhouses was at Al Furjan (39 per cent) with Dubai Investments Park at 38 per cent.

Led by an increase in population, rents in Dubai have been on the rise over the past few years, resulting in demand outpacing supply.

Dubai also launched the Smart Rental Index earlier this year to bring transparency to the market.

According to Asteco, a limited supply of units in established developments, an uptick in premium projects within average communities, and renovations or upgrades to existing properties also fuelled pronounced changes in rents.

It added that communities with larger available inventories recorded no growth or marginal downward adjustments. Cavendish Maxwell data showed that gross rental yields remained robust across Dubai throughout 2024.

At year-end, average yields were 7.4 per cent for apartments and 5.1 per cent for villas and townhouses.

Topping the rental return charts were Dubai Investments Park (10.3 per cent), International City (9.4 per cent) and Dubai Production City and Downtown Jebel Ali (both 8.6 per cent).

This article is originally published in Khaleej Times.