The long-term rental market in Dubai witnessed a dramatic increase in yields throughout 2023, positioning the city well ahead of its global counterparts
As the Dubai real estate market continues at an upward momentum this year, real estate management company AirDXB has released the 2023 market review which revealed key trends including annual market occupancy increases, stock decreases and top performing areas.
Short-let market
Dubai’s short-let market has witnessed a substantial surge, with annual revenues soaring by 14 percent year-on-year (YoY) to an impressive average of AED159,1000.
Occupancy levels also climbed by 21 percent YoY, reaching an average of 57 percent, outshining global counterparts such as Hong Kong, Singapore, and Monaco.
The period from February to September saw a dip in short-let stock levels as homeowners shifted towards the long-term rental market due to rising rental prices. This transition allowed those remaining in the short-let sector to command higher Average Daily Rates (ADRs), as demand outpaced supply.
However, a resurgence in stock levels during November and December, fueled by COP28, presented lucrative opportunities for individual private listings.
Top performing areas for the short-let segment
Green Community West
Dubai Silicon Oasis
Jumeirah Lakes Towers (JLT)
Dubai Creek
Long-term rentals
The long-term rental market in the emirate witnessed a dramatic increase in yields throughout 2023, positioning the city well ahead of its global counterparts.
Rental renewals outpaced new rental contracts by 5 percent in average value, suggesting that, for some residents, moving accommodation might have been a more cost-effective option.
Top performing areas for the long-term rental segment
AREA HIGHEST RENT (AED) AVERAGE RENT (AED) LOWEST RENT (AED)
Dubai Marina 250,000 110,000 44,000
Downtown Dubai 1,350,000 30,000 57,600
Palm Jumeirah 350,000 175,000 85,000
Jumierah Lakes Towers (JLT) 175,000 85,000 55,000
Business Bay 1,450,000 99,999 48,000
Most affordable areas for long-term rentals
AREA HIGHEST RENT (AED) AVERAGE RENT (AED) LOWEST RENT (AED)
Al Furjan 110,000 65,000 43,000
Jumeirah Village Circle (JVC) 1,350,000 70,000 36,000
Arjan 138,000 67,400 46,000
Al Warsan 78,000 44,999 32,999
Dubai Silicon Oasis 609,000 54,995 39,999
Dubai Sports City 160,000 53,000 40,000
Discovery Gardens 70,000 55,000 39,000
