LP.com

Due to the sharply rising demand for ultra-luxury properties, the luxury property rental market in Dubai reached a historic peak in the first five months of 2024.

Dubai, a shining gem of the UAE, continues to captivate the global high-net-worth individuals. According to data from Betterhomes real estate brokerage, Dubai saw a total of 270 annual lease agreements for luxury properties exceeding or reaching 1 million dirhams within just these five months. This data not only reflects the market's vibrancy but also highlights Dubai's crucial position in the global luxury real estate market.

Leading areas in Dubai's high-end rental market include Palm Jumeirah, Mohammad bin Rashid City, and Dubai Hills Estate. These areas attract affluent families and investors due to their unique geographical locations, luxurious lifestyles, and world-class architecture and facilities. Villas and townhouses dominate 61% of the rental market, while apartments make up 39%. The average size of luxury properties is also impressive, with villas and townhouses averaging around 6,300 square feet, and luxury apartments averaging approximately 4,000 square feet.

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Dubai's luxury property rents, though comparatively lower than other international metropolises like London, New York, Hong Kong, and Singapore, offer much larger average sizes. For instance, the minimum annual rent for luxury properties in Dubai is around 500,000 dirhams, whereas in equivalent conditions, London and New York approach 700,000 dirhams, Singapore reaches 955,000 dirhams, and Hong Kong goes up to 1.17 million dirhams.

Furthermore, according to Henley and Partners' report, the UAE is set to welcome over 6,700 new millionaires this year, marking a historic high for the third consecutive year. These wealthy individuals often choose Dubai as their ideal place for living and investment, driving the thriving luxury property rental market. Their preference for Dubai's luxury properties is not only due to the relatively lower rental prices but also because of the rich lifestyle choices, excellent architectural quality, and high-quality community facilities available here.