Annual growth rates in Dubai’s rental market slowed to single digits in 2Q 2024, with villa rental rates growing 4% y-o-y and apartments at 8% y-o-y, according to a report by property management firm Asteco picked up by Zawya. The increase was linked to the revised RERA rental index, which allows landlords to impose higher rent increases upon renewing leases, as well as more attractive funding options for off-plan properties.

Sales prices also saw growth levels relatively unchanged from the same quarter last year, increasing 2% y-o-y, the report adds. Areas including Jumeirah Village and Business Bay logged higher price increases, driven by heightened demand and a “significant rise” in off-plan launches and newly completed developments.

Some 25k residential units are slated for handover in Dubai in 2H 2024, with potential delays to 2025, Asteco expects. The emirate handed over a little over 6.7k units in 2Q.

ICYMI #1- CBRE had noted a 21.3% y-o-y pickup in residential prices in Dubai in 1H 2024, with apartment prices increasing by 20.7% y-o-y, and villa prices increasing by 24.3% y-o-y, without clarifying the breakdown of price increases in 1Q and 2Q 2024. It also expected some 40.6k to be delivered in 2H 2024.

ICYMI #2- Property transactions in Dubai hit a new record in 2Q 2024, climbing to some 48k, according to Springfield. Various reports valued the total transaction value during the quarter near AED 124.4 bn.

AL AIN + THE NORTHERN EMIRATES-

The Northern Emirates welcomed more tenants from Dubai in 2Q 2024, on the back of lower rental rates, improved development standards, infrastructure, and flexible working arrangements, the report adds. The region saw high sales activity during the quarter, alongside steady project launches, and logged greater rental growth for typical apartments compared to high-end properties.

Al Ain recorded steady apartment rental rate growth during the quarter, with villa prices up 2% y-o-y and apartment prices remaining steady y-o-y.

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