Dubai’s rental market is set to witness an increase in 2025, with rents expected to rise at a moderate pace of around 10%. This growth is attributed to strong demand driven by an influx of new residents into the emirate. The rising population, which has grown significantly in recent years, remains a key factor behind the persistent increase in property rental prices. According to the Dubai Statistics Centre, the emirate’s population reached 3.814 million in December, up from 3.654 million at the end of the previous year—a year-to-date increase of 159,522.
High-end localities are anticipated to experience the steepest rent hikes, as limited new supply and increasing demand from wealthy individuals put upward pressure on prices. Areas like Jumeirah Islands and Al Barari, known for their luxury offerings, are likely to see notable growth. In the broader rental market, demand has surged to such levels that record-breaking lease agreements have been observed, such as a penthouse rented for Dh4.4 million and a villa leased for Dh15.5 million annually.
which areas will be most effected?
According to Bulchandani, luxury areas such as Jumeirah Islands and Al Barari are expected to experience significant rent increases, driven by high demand and limited availability. Emerging locations like Dubai South, supported by major infrastructure developments such as the Al Maktoum International Airport, are also poised for substantial growth.
Meanwhile, established neighborhoods like Jumeirah Beach Residence (JBR), Town Square, and Dubai Production City are likely to see more stable rent growth, reflecting a balanced supply and demand dynamic in these areas.
