On the eve of the so-called low season in the residential rental market in Dubai, experts from the rental and property management international company Colife have identified a new interesting trend. People are no longer afraid of the sizzling heat; demand among tenants is already evident both in the summer months and in the period from April, the month from which the so-called low season begins, when demand among tenants and rental prices decrease. Yes, seasonality is still felt in the rental housing market, but not as pronounced.
“The cost of renting housing in Dubai continues to rise. Tenants understand not only how important it is to provide themselves with long-term housing, but also to fix rental rates. Specifically, by concluding contracts for an average period of 5 to 7 months. Based on our work, we see that March and April in terms of the number of concluded medium-term contracts have already exceeded the “high season” values by +2.56%, and the rental rate for such contracts has become higher by +1.67%. Tenants are increasingly less likely to check the possibility of some seasonal reduction in rental rates in their requests, and often by no more than 5%,” says Alex Vorobyov, the Pricing Analyst of Colife.Expectations of a decline in the high season are traditionally present, but the decline itself is not expressed. This is exactly what happened last year, when apartment rental prices in the 3rd quarter increased by an average of 3-7% (depending on the area) compared to the 2nd quarter. In 2024, seasonality in price may not be expressed due to expectations of an increase in rental rates and fixation of rates by some tenants for a six-month period.“It is worth saying that last year we hardly noticed a decrease in demand for rentals during the so-called low season in the summer months. The summer of 2023 was not as hot compared to the same period in 2022. However, it is now becoming clear that the thing is not only, or at least not only, about the weather. The market is clearly undergoing changes,” says Ilnara Muzafyarova, the Head of Colife.Previously, Colife experts predicted that in 2024, the cost of short-term rental (up to 6 months) housing will increase by 20% and about 15% for long-term rental (from 6 months) compared to 2023.
