New residents in Dubai are changing the game, and a rise in rents is expected for 2025. In Dubai, properties are gaining immense value, and rents will see a 10 percent increase next year. Real estate experts are the ones who predicted this trend, and the exclusive and luxury areas will be the most affected by this increase.
The most exclusive enclaves within the city maintain a limited supply but also a high demand due to the establishment of millionaires in the area. Thanks to this factor, the regions surrounding the peripheral center of Dubai will also see changes in prices due to the movement of residents to those places.
Which areas will see the most increases in Dubai?
Experts in real estate confirmed that two important areas of the city will undergo changes during 2025. These are the neighborhoods of Jumeirah Islands and Al Barari, which have a high rental demand due to the number of residents recorded in them. In addition to these enclaves, Dubai South is another emerging region that will be affected by this trend. It features a wide variety of infrastructure projects, such as Al Maktoum International Airport, that support these increases.
From the company Sunrise Capital, they predicted that this trend in other areas like Dubai Marina, Palm Jumeirah, Downtown Dubai, and Jumeirah Bay Island will also see high demand, leading to increased rental prices in the upcoming period. In these locations, most of the population is composed of wealthy expatriates and global professionals.
What is the trend in the more affordable neighborhoods of Dubai?
The mentioned exclusive areas within Dubai may register rental increases that could include percentages of 10 and 12 percent. Suburban communities such as Dubai Hills Estate and Arabian Ranches are also included in these parameters, as they are ideal spaces for wealthy families and emerging investors within the enclave.
This equation also includes cheaper neighborhoods like Jumeirah Village Circle (JVC) and Al Furjan, which could also experience minimal rental increases of between 2 and 5 percent, as they will absorb a higher volume of new housing deliveries.
Such was the population growth in Dubai over the past year.
This increase in rents has a main factor, which is the rise in the population in the city and throughout the territory of the United Arab Emirates. According to the Dubai Statistics Center, the population of the emirate reached 3.814 million on December 10, compared to 3.654 million at the end of last year, an increase of 159,522 so far this year. The price of rents achieved a series of record increases, and in recent weeks, a penthouse was rented for 4.4 million dirhams annually.
Real estate specialists in Dubai provided data that supports this trend of increases for 2025, where an average increase of approximately 15 to 20 percent was recorded in most areas in 2024. Meanwhile, residential rents in 2024 increased by five percent for villas and 16 percent for apartments in Dubai.
