Dubai’s leasing market booms as tenants and investors strengthen the sector

haus & haus experts analyse the stellar performance of long-term rentals and what it means for property investors.

Despite the scorching summer temperatures and an increase in travel, Dubai’s rental market has shown remarkable resilience in the past few months.

The emirate’s leasing sector has not only remained strong but has also seen significant activity, driven by new tenants and strong investor confidence.

The leasing landscape

A surge in population has bolstered the demand for rental properties and ensured a steady flow of tenants into the market. In fact, the Dubai Population Clock shows that Dubai now has over 143,000 more permanent residents compared to July last year.

Many existing tenants are also choosing to renew their contracts and settle into their communities. According to the haus & haus Market Reports for Q2 2024, popular areas such as Dubai Marina, Downtown Dubai, and Jumeirah Village Circle have seen a high number of rental renewals.

The haus & haus Leasing department has also seen record-breaking numbers this summer. In July, the team achieved its best month in the company’s 11-year history, with the highest revenue on top of a remarkable 28.15% increase in the number of deals in contrast to the same month in 2023.

The case for property investors

All of these factors create a favourable environment for investors seeking lucrative opportunities. Rental yields have remained stable at above 7% since March 2023, and prices have continued to rise despite an increase in supply.  

The price per square foot has also grown from AED 63 in July 2023 to AED 75 in July 2024, reflecting strong demand in the market.

“In line with our projections, the data shows that Dubai remains a very solid investment opportunity,” said Jake Walton, Leasing Director at haus & haus. “The stability in rental yields and the continuous increase in demand are clear indicators of a thriving real estate landscape.”

Projections are bright for Dubai’s leasing market as we move into the winter months, with a high level of rental activity expected as new expats make Dubai their home and more investors become long-term landlords.

Want to know more? Book a call with our investment team.