Short-term Rentals and Property Management Market in Dubai in 2024

April 23, 2024
The increasing demand for Short-term rentals in Dubai

Dubai’s real estate landscape has presented an upward movement, marking a notable increase in property prices and transaction volumes in February 2024. With a blend of luxury holiday homes in Dubai and strategic property management in Dubai, the market is set for balanced growth and robust activity. This article get you into the latest trends and statistics that underline the consistent progress in Dubai’s real estate sector, highlighting opportunities for short-term rentals in Dubai and the burgeoning demand for holiday homes and property investments.

In February 2024, Dubai witnessed a moderate yet steady rise in property prices, with an increase of 0.83%. This progression followed a marginal 0.2% increase the previous month, aligning with expectations for a gradual slowdown in price appreciation. The Property Monitor Dynamic Price Index (DPI) revealed an expected annual gain ranging from 5-8%, setting the current price at AED 1,294 per square foot, a figure nearly 5% higher than the last peak in September 2014.

The increasing demand for Short-term rentals in Dubai
The increasing demand for Short-term rentals in Dubai

The unpredicted property management sales in Dubai

Remarkably, February saw a record-breaking surge in sales transactions, with a year-on-year increase of 30.4%. Dominated by residential sales, which comprised 92.1% of the total, the market recorded 10,966 transactions for apartments, townhouses, and villas out of 11,913 total transactions. This surge underscores the vibrant demand for holiday homes in Dubai, buoyed by effective property management in Dubai.

Off-Plan Market Dynamics

The off-plan sector continued to be a key market driver, with 6,384 Oqood transactions noted in January, despite a slight 0.5% dip in volume. Holding a significant 53.8% market share and adjusting to 59.8% for specific sales technicalities, off-plan properties remain pivotal in Dubai’s real estate landscape. February’s addition of nearly 10,000 new units, mainly apartments, and Emaar’s announcement of The Heights Country Club and Grand Club Resort further indicate a growing supply, particularly along the E611 corridor.

Mortgage Activity and Future Outlook

Mortgage transactions slightly decreased by under 5% in February, totaling 2,868 loans, with new purchases making up 46.1% of the activity. This indicates a continued interest in property ownership, supported by stable interest rates from the US Federal Reserve. The forecast remains optimistic, with expected stable growth in property values and a strong absorption rate for newly launched units, driven by end-users and investors in short-term rentals in Dubai.

What can you expect in the future of Dubai in property management?

February 2024 marked another progressive month for Dubai’s real estate market, balancing price appreciation, strong sales transactions, and sustained off-plan development. Despite potential challenges such as supply constraints, the outlook for Dubai’s property market, including the flourishing sectors of property management in Dubai and short-term rentals, remains positive, promising continued growth throughout the year. Whether for investment in holiday homes in Dubai or exploring the dynamic property market, there’s no doubt that Dubai continues to offer lucrative opportunities for savvy investors and homeowners alike.

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