According to a recently released report, the rental price increase for villas and townhouses in Dubai’s Palm Jumeirah area was the highest in Q1 2024, rising 63 percent over the same period in 2023.
The average rent for villas and townhouses in Palm Jumeirah grew from AED 656,114 in Q1 2023 to almost AED 1.07 million in Q1 2024, Q1 2024 Market Report. This tremendous gain indicates this historic area’s long-term appeal and premium position.
Rents in Dubai have increased significantly across various communities, including Dubai Creek Harbour, Palm Jumeirah, Jumeirah Golf Estates, and Jumeirah Beach Residence. However, Dubailand and Al Barsha saw the highest increases (42.54 percent and 31.08 percent, respectively).
Rental Increase in Other Dubai Areas
Dubai Hills, which came second behind Palm Jumeirah, saw a 36% annual increase in average rental costs, rising from AED 238,626 to AED 325,130. Rental rates at The Meadows Dubai also increased by 35 percent, from AED 252,867 to AED 341,524.
The rental prices in Jumeirah Islands and Green Community both jumped by 29%: in Jumeirah Islands, the price went from AED 309,114 to AED 397,769, while in Green Community, the price climbed from AED 199,999 to AED 257,948.
Other major rises included Damac Hills (21%), Mudon (20%), and Jumeirah Golf Estates (24%). Rental costs rose dramatically in The Springs, Jumeirah Park, Arabian Ranches, and Lakes, with increases ranging from 15% to 19%.
Certain communities experienced more moderate growth, but the majority witnessed double-digit gains. Victory Heights and Arabian Ranches 3 witnessed the smallest gains, at 4% and 5%, respectively, while Emirates Hills, Arabian Ranches 2, Town Square, Al Furjan, and Mira/Reem saw a rise of 11% to 12%.
Dubai’s booming real estate rental market reflects the city’s continued popularity as a major international hub for commerce, tourism, and luxury living. Owners have gained from the ongoing demand for premium residential homes by raising rental rates following the trend.