As the demand for residential houses in Dubai continues growing, many people are left thinking: Will rents cross up in 2025? The answer is yes. Property experts are searching in advance that rents in Dubai will see an increase. This boom in rental prices is specifically driven by the influx of recent residents, which encompass expatriates, experts, and high-net-worth individuals. 

As Dubai’s population continues to develop, these developments are predicted to shape the rental market for the year ahead.

Rents In Dubai To Rise In 2025: Which Areas Will Be Affected?

Factors Driving The Rise In Rental Prices

One of the main reasons for the rising rents in Dubai is the population growth in the emirate. As more people move to Dubai, there is a strong demand for housing. According to the latest data, the population of Dubai reached 3.814 million by December 2023, marking an increase of around 159,522 people compared to the previous year. This steady population growth has placed more pressure on the real estate market, leading to higher rental prices.

Additionally, the continued influx of professionals, expatriates, and wealthy individuals has driven up demand for residential properties, particularly in high-end and desirable areas. As the demand for luxury homes increases, property owners can raise rents to reflect the high demand and limited supply.

Rents In Dubai In 2024 And Projections For 2025

In 2024, rents in Dubai rose by around 15 to 20 percent across many areas. However, the growth was slower compared to the sharp increases witnessed in 2022 and 2023. Looking ahead to 2025, rents are expected to continue rising, but at a more moderate pace. Experts predict that the increase will range from 5 to 10 percent across most parts of the city.

This slowdown is attributed to several factors, including the availability of more housing options, as new properties are handed over and ready for occupancy. Moreover, tenants are showing a preference for long-term leases at current rates, which could help keep rent increases in check for the time being. Despite this moderation, areas that continue to experience high demand will likely see rent increases closer to the upper end of the forecast range, around 10 to 12 percent. This includes popular and well-established neighborhoods in Dubai.

Which Areas Will See The Biggest Rental Increases In 2025?

In 2025, certain areas of Dubai are expected to see higher rent increases compared to others. These areas generally have limited supply, high demand, or a combination of both.   Luxury neighborhoods such as Jumeirah Islands and Al Barari are expected to continue experiencing significant rental increases. These areas are in high demand due to their exclusive nature and the lack of new supply. 

As a result, property owners in these areas can charge higher rents, particularly for villas and high-end properties. In addition to these neighborhoods prime waterfront locations like Palm Jumeirah, Dubai Marina, Downtown Dubai, and Jumeirah Bay Island are also expected to see strong rent growth. These areas are highly sought after by affluent expats and wealthy professionals, and with limited new properties available, demand will continue to drive prices higher.

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While the central areas of Dubai will experience high demand and rent increases, suburban communities are also expected to see a rise in rental prices. Areas like Dubai Hills Estate and Arabian Ranches are becoming increasingly popular with families looking for more spacious homes in well-connected, lifestyle-oriented neighborhoods demand for these types of properties is expected to lead to notable rental increases in these suburban areas.

Dubai South, a rapidly developing area, is expected to experience significant rental growth. This area is benefiting from large-scale infrastructure projects, including the construction of the Al Maktoum International Airport, which will enhance its connectivity and appeal. As more people move into this area, rents are likely to rise due to the increasing demand for housing.

In terms of affordable housing, areas like Jumeirah Village Circle (JVC) and Al Furjan may see minimal rent increases in 2025. These neighborhoods are likely to absorb a higher volume of new property handovers, which will help stabilize rents. As a result, these areas will see increases of around 2 to 5 percent, rather than the larger hikes expected in more luxurious locations. Outlying areas such as International City, Al Quoz, and Jebel Ali Village are expected to see more stabilized rents in 2025.

These areas are more affordable compared to central and luxury locations, and they have a higher volume of available properties. As competition between landlords increases, rental prices are expected to remain more stable in these areas.

The Impact Of New Developments On Rental Prices

As more residential projects are completed in Dubai, new supply will help meet some of the growing demand. However, this new supply will not be enough to fully balance the demand in certain areas. Locations with a higher concentration of new developments, particularly suburban areas, may see rents stabilize or rise at a slower rate due to increased competition among landlords.

In areas with limited new supply, rental prices will continue to increase as demand continues to outstrip the availability of properties. Luxury areas, in particular, are expected to experience higher rent increases due to the lack of new high-end properties.

Arshad Darbar’s Thoughts

Arshad Darbar, a seasoned real estate expert, views the predicted rent increases in Dubai for 2025 as a natural consequence of the ongoing demand for residential properties in the emirate. He believes that Dubai’s strong population growth, coupled with the continued influx of expatriates and high-net-worth individuals, will drive rental prices higher, particularly in prime locations. Darbar emphasizes that luxury areas such as Palm Jumeirah, Downtown Dubai, and Dubai Marina are likely to experience the steepest increases due to the limited supply of high-end properties and the strong demand from affluent residents. 

He also points out that suburban areas, including Dubai Hills Estate and Arabian Ranches, will see a noticeable rise in rents as more families move to these well-connected, lifestyle-oriented communities. However, Darbar cautions that while the overall rental market will continue to climb, there may be more stability in affordable neighborhoods like JVC and Al Furjan, where an influx of new properties could balance supply and demand.

Overall, Darbar anticipates a moderate but consistent rise in rents, with some areas experiencing sharper increases, making it crucial for tenants to carefully evaluate their options in the face of the changing market dynamics. 

Conclusion

As Dubai’s population continues to grow, rental prices in the emirate are expected to rise in 2025, although at a more moderate pace than in previous years. High-demand areas, particularly luxury neighborhoods, will see the largest rent increases, with some locations expected to experience hikes of up to 10 to 12 percent. Suburban areas and emerging hubs like Dubai South will also see rental growth.

For tenants, this means that securing a rental property in some of the most desirable locations may become more expensive in 2025. However, those willing to consider more affordable or outlying areas may find more stable rents or smaller increases. With the influx of new residents continuing, the rental market in Dubai remains competitive, and rents will likely continue to rise in the years to come.