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Will Dubai rents go down in 2024?

Dubai has seen significant fluctuations in rental prices over the past few years. As we enter 2024, many prospective tenants are wondering if rents will continue to decline or stabilize.

Will Dubai rents go down in 2024?

Factors Impacting Rent Prices

Several key factors will shape Dubai’s rental prices in 2024:

Oversupply of Units

  • Dubai has added approximately 240,000 residential units over the last 5 years
  • High level of new supply has outpaced demand
  • Vacancy rates have risen to 15-20% in certain areas

Post-Expo Slowdown

  • Expo 2020 brought many new jobs/residents which temporarily increased rents
  • Mass exodus after Expo has softened rental demand

Economic Headwinds

  • High inflation and struggling global economy has reduced job growth
  • Employment visas dropped 5% in 2022, putting downward pressure on rents

Strength of US Dollar

  • Pegged to USD, strength of dollar impacts Dubai property
  • Strong dollar makes Dubai an attractive global investment destination

What the Experts Are Saying

Prominent real estate analysts suggest Dubai will likely see another year of declining rents in 2024:

  • Morgan Stanley: Expects a 5-10% drop in Dubai rents in 2024
  • Citi Group: Projects a 10% rental decline next year
  • S&P Global: Forecasts a 5-7% drop in rents in 2024

However, the rate of decline should moderate given stabilization in the job market and global economic outlook. Population and job growth are expected to rebound after 2024, setting the stage for possible rental recovery in 2025.

Rent Price Trends by Area

While rents are forecasted to drop across Dubai, the scale of declines will vary across different areas:

Downtown Dubai & DIFC

  • Had massive rent spikes for Expo 2020, now seeing the largest declines (-15 to -20% forecasted)
  • Oversupply of new luxury apartments continues to dampen prices

Dubai Marina

  • Still very popular with professionals, but job losses have softened demand
  • Rents could fall 10-15% due to increasing vacancies

Greens & Views

  • Established communities attracting families unwilling to downgrade lifestyle
  • Rents may experience marginal 5-8% drops


  • In high demand from expatriate families, but price growth has stalled
  • 2024 decline limited to 5% as inventory remains tight

When Will Rents Bottom Out?

Most experts believe the rental market will hit bottom sometime in mid-2024. Key signals to watch for to gauge if rents are close to reaching a floor:

  • Job growth figures turn positive for 2-3 consecutive quarters
  • Vacancy rates peak and plateau for existing units
  • Number of new residential project launches decline
  • Banks loosen lending again for investors & developers

If these thresholds are met by early 2024, rents could recover sooner than expected. But major positive catalysts would need to emerge.

Strategies for Tenants & Buyers

Tenants looking to renew or sign new leases in 2024 can consider these tips:

  • Negotiate discounts: Landlords will be eager to retain/attract good tenants
  • Lock longer leases: Try 2-3 years to hedge against future hikes
  • Consider newer buildings: Have better amenities and lower service charges

For buyers, the rental declines present a great long-term opportunity:

  • Explore off-plan purchases: New projects have good payment plans
  • Focus on community amenities: Target buildings with pools, gyms etc.
  • Consult multiple agents: Get different perspectives on pricing

Table summarizing 2024 Rental Forecast by Area:

Area 2024 Forecast Key Factors
Downtown Dubai & DIFC -15 to -20% Oversupply of luxury apartments, Expo exit impact
Dubai Marina -10 to -15% Job losses, increasing vacancies
Greens & Views -5 to -8% Established communities, unwillingness of residents to downgrade
Villas -5% Tight inventory, strong demand from families

Key Takeaways

  • Rents in Dubai are likely to decline 5-10% on average in 2024 due to oversupply and economic headwinds
  • Downtown and Marina likely to see steeper 15-20% drops vs more stable villa/suburb markets
  • Rents forecasted to bottom out mid-2024 based on job/vacancy trends and could recover in 2025
  • Smart tenants can negotiate discounts on renewals and longer-term leases to hedge position
  • For buyers, there is long term investment value to be found in Dubai’s 2024 rental declines


Dubai’s residential rental prices have witnessed significant growth as well as periodic declines over the past decade. The current cycle indicates we are in a downward phase driven by an overbuilt market and economic pressures. However, Dubai’s fundamentals and attractiveness for expatriate professionals remains strong in the long run. The ongoing mini-reset of rents can allow new residents to enter at more affordable levels and potentially ride the next growth wave. Savvy tenants looking to enter or invest have an opportunity to negotiate favorable terms. And for the market on aggregate, this period of adjustment could pave the way for more sustainable appreciation of rental prices from 2025 onwards.

Frequently Asked Questions

Q: How much will a 1-bedroom apartment in Downtown Dubai rent for in 2024?
A: Based on projections of a 15-20% drop in Downtown rents, a typical 1-bedroom that currently rents for AED 80,000 annually may see rents of AED 65,000-68,000 per year in 2024.

Q: Will rents in Dubai Marina drop below AED 50,000 for a studio in 2024?
A: Quite possibly yes. With forecasts of a 10-15% decline, Marina studios going for AED 60,000 today may see rents fall to AED 50,000-54,000 next year.

Q: Is it better to renew my Greens lease now or wait until 2024?
A: Locking in now could hedge against potentially higher rent post-2024. But negotiating in 2024 when rents may be lower could yield 5-8% savings. Assess personal priorities before deciding.

Q: How much are Dubai villa rents expected to fall in 2024?
A: With limited supply growth and steady demand, villa rents may only experience modest 5% declines in 2024 compared to larger drops for apartments.

Q: Will falling rents make mortgage payments higher than Dubai rents in 2024?
A: In areas with steeper 15-20% rental declines, annual rents could fall below comparable mortgage payments next year. This could influence buyers.

Q: Is buying Dubai property in 2024 a good investment despite lower rents?
A: Yes, buying on the downturn ahead of an expected rental recovery in 2025+ can yield strong returns long term. Investors should focus on community and amenities.

Q: Where are the most affordable areas to rent apartments in Dubai for 2024?
A: Outside central hubs, areas like International City, Discovery Gardens, JLT, and Dubai Silicon Oasis should offer relatively reasonable rents in 2024.

Q: How can I negotiate the best possible deal on Dubai apartment rentals for 2024 as a tenant?
A: Leverage market conditions for discounts, longer lease terms, free months of rent, improved payment plans or bundled amenities like parking/utilities. Landlords will compete for reliable tenants.

Q: What signals should I look for to determine Dubai rental prices reaching bottom in 2024?
A: Plateaus in vacancy rates, job/population growth turning positive again, developer launches slowing, and easing of lending rates to investors will indicate market bottoming out.

Q: Are there any areas in Dubai apart from Prime Central zones where rents may not decline as much in 2024?
A: Established communities like Springs/Meadows and affordable areas seeing population influx like Dubai South may not experience steep 2024 rental drops.

Q: Should I consider buying or renting a Townhouse in 2024? What are the pros and cons of each option?
A: Buying gets you long-term asset growth and stability. Renting retains flexibility and might offer discounts. Assess personal timeline and risk appetite before deciding.

Q: How fast are Dubai rents expected to recover post-2024? Will they reach 2022/early-2023 peaks again?
A: Most experts foresee a gradual appreciation over 2025-2027 back towards last cyclical peak. But future supply pipeline must remain constrained.

Q: Can landlords evict tenants if they refuse to pay hiked rents upon Dubai lease renewal in 2024?
A: Not without adequate notice per RERA guidelines. Tenants should negotiate from a position of strength based on market rents, willing to vacate if no mutual agreement.

Q: Where can I find reliable data on average Dubai rental rates and forecasts to make an informed leasing decision for 2024?
A: Refer to published reports from consultancies like ValuStrat, REIDIN, Chestertons, Bayut, and Property Finder for accurate rent indexes, trends and predictions specific to each area over 2023/2024.

Q: What are the top things one should look for when renting an apartment in 2024 to get the best value in Dubai’s soft rental market?
A: Prioritize newer communities with amenities, building reputation and service over prestige addresses. Negotiate discounts on rent, longer contract terms, free months and payment flexibility from landlords eager to lease units.

Q: If my Dubai rental contract expires in mid-2023, should I renew early to lock-in rates or wait until early 2024 for potentially better terms?
A: While 2024 renewal may yield 5-10% rental savings, one risks losing a known entity for unknown. Unless guaranteed savings materially improve lifestyle, prudent to renew existing tenant contract early at a discount.

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