The rent in Dubai will continue to grow next year, albeit a moderate pace, a increase of 10 percent is predicted. This growth is due to stable housing demand, which is supported by the influx of new inhabitants in the Emirates. Real estate insiders note that high -class areas may encounter a more significant increase in rent, since housing supply in these locations remains limited, and interest from wealthy customers remains high. At the same time, the rental in the suburbs will also increase, since many residents will look for housing away from the central areas with their high prices.
In recent years, population growth has become a key factor that contributes to an increase in real estate rental prices. According to the Dubai Center for Statistics, the population of the emirate reached 3.814 million people, which is much more than at the end of the previous year. It is expected that this trend will continue, since Dubai continues to attract specialists, entrepreneurs and those who are looking for more comfortable living conditions.
Recent records in the rental market confirm these forecasts: Penthouse was leased for 4.4 million dirhams, and the villa for 15.5 million dirhams per year. Despite the slowdown in growth rate compared to the peak indicators of 2022 and 2023, experts, such as Rupert Simmonds from Betterhomes, predict the average level of increase in rental rates by 15-20 percent in most areas in 2024. Forecasts for 2025 also remain positive, since Dubai continues to attract a diverse and carefully selected population.
According to forecasts, the growth rate of rent in Dubai in the coming years should remain moderate, with an expected increase of 5-10 percent by 2025. This is due to an increase in offers from new real estate objects, which contributes to the cooling of the market. As Simmonds noted, tenants more and more prefer long -term contracts of independent lease, which also affects the dynamics of prices. In this context, Hyder Tuaym from Vavustrat pointed out a significant increase in the rent in 2024, which amounted to 5 percent for villas and as much as 16 percent for apartments, while it is expected that in the future the apartments will continue to grow in price, while villas are stabilized.
The expert from Savills Andrew Cummings predicts the total growth of rent in Dubai at 10-12 percent, emphasizing that apartments can demonstrate higher growth rates compared to villas. The reasons for this are a high demand for city life, an influx of expatriants and the stable attractiveness of Dubai as an international business center. A limited offer of high -quality residential units, especially in the central areas, also creates pressure on rental rates. Nevertheless, Ramji Ayer from Acube Developments emphasized that the average rental growth was 10-15 percent, while in the most popular areas this figure reached 20 percent. It is expected that the total demand for rented real estate will continue to exceed the proposal in most areas, maintaining a tendency to increase rental prices.
