Dubai Real Estate Rental Market: What to Expect in 2025

In 2025, experts predict an average 5-10% increase in rental rates due to steady demand driven by an increasing number of new residents.

Population and Demand Increase

By December 2024, Dubai's population had reached 3.814 million, increasing by 159,000 in a year. This increase, coupled with the high interest from expatriates and investors, contributes to a rise in rental rates, especially in elite areas. 

Segment Forecasts 

A rate increase of 10-12% for apartments is expected due to limited supply in central areas. Analysts expect stabilization of rental rates for villas thanks to an increase in supply. Elite areas like Palm Jumeirah, Downtown Dubai, and Dubai Marina will remain leaders with growth up to 15%. Rates in budget areas like Jumeirah Village Circle and Al Furjan might increase by 2-5% due to a large number of new properties.

Key Factors 

• A steady inflow of expatriates and professionals maintains high demand.
• Limited supply in premium locations.
• The handover of new properties helps stabilize the market in the outskirts.

Rental Trends 

In 2024, the average rental growth was between 10-15%, with the elite segment reaching 20%. This trend will continue in 2025, but the rate of growth will slow down, especially in budget areas.

The rental market in Dubai continues to evolve, providing residents and investors with new opportunities. From elite apartments to budget properties - the city remains a desirable place to live and work. 

If you are planning to invest in real estate for rental income, reach out to our experts for a free consultation.