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With Dubai’s population growing by over 159,000 people in 2024 to 3.814 million, demand for rental housing continues to rise. This population increase is expected to drive rental price growth by approximately 10% in 2025.
Real estate experts forecast significant rent increases in prime locations due to limited supply and high demand. Haider Tuaima, head of research at ValuStrat, reported a 5% rise in villa rents and a 16% increase in apartment rents for new contracts in 2024. He predicts villa rents will stabilize while apartment rents may grow by 10% in 2025.
Luxury areas expected to see significant rent hikes include Jumeirah Islands, Al Barari, Dubai Marina, Palm Jumeirah, Downtown Dubai, and Jumeirah Bay. Limited supply and an influx of affluent expatriates and professionals will sustain demand.
More affordable communities with expected rental growth include:
- Dubai South, driven by major infrastructure projects like Al Maktoum Airport.
- Jumeirah Beach Residence (JBR), Town Square, and Dubai Production City, where balanced demand and supply will support steady rent increases.
Dubai remains a magnet for new residents and investors, thanks to its economic growth and infrastructure development. While rental rates are expected to rise moderately, especially in premium areas, investments in these locations are likely to yield favorable returns.
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