Dubai’s real estate market continues to experience a significant surge in demand for one and two-bedroom apartments as rising rental costs push tenants toward smaller, more affordable units. The consistent population growth since 2021 has been a key driver behind escalating property prices and rental rates, surpassing the record highs set in 2014.
Recent data reveals that one and two-bedroom apartments accounted for over two-thirds of transactions during the third quarter of 2024, highlighting their popularity among both new residents and long-term tenants. Communities such as Jumeirah Village Circle (JVC) remain highly sought-after for their balance of value and connectivity, while established areas like Dubai Silicon Oasis, Dubai Marina, Business Bay, and Emirates Living also maintain strong appeal.
Rental prices continue to trend upward despite many tenants opting to renew their contracts or invest in property ownership. As of Q3 2024, the average annual rent for a studio apartment in Dubai stood at AED 38,428, while one-bedroom and two-bedroom units averaged AED 58,812 and AED 84,589, respectively. Larger apartments, including three-bedroom units, commanded rents of AED 145,149 per annum.
The emirate’s population has grown by over 400,000 in the last four years, reaching approximately 3.82 million. This increase has been fuelled by an influx of professionals, investors, and high-net-worth individuals attracted by Dubai’s robust infrastructure, investment opportunities, and high quality of life.
With rental yields reaching up to 7%, Dubai continues to offer exceptional value for property investors compared to many global cities. The city’s strategic growth initiatives, combined with its investor-friendly environment, position Dubai as a prime destination for real estate investment in the coming years.
