Dubai Rents Expected to Rise in 2025

Rental rates in Dubai are projected to increase by 5-10 per cent in 2025, driven by a growing population and strong demand for housing. The emirate’s population reached a record 3.814 million this year, marking an increase of 159,000 residents, according to the Dubai Statistics Centre.

High-end areas, such as Palm Jumeirah, Downtown Dubai, and Jumeirah Islands, are likely to see rent hikes of up to 10-12 per cent due to limited supply and continued demand from affluent expatriates. Meanwhile, suburban communities like Dubai Hills Estate and Arabian Ranches may experience notable increases as families seek lifestyle-focused neighbourhoods.

In contrast, affordable neighbourhoods such as Jumeirah Village Circle (JVC) and Al Furjan are expected to see minimal growth, with rents rising around 2-5 per cent due to an influx of new property handovers. Outlying locations like Dubai South and International City may remain stable, offering competitive rental options.

Industry experts attribute the upward trend to Dubai’s status as a global hub attracting professionals and high-net-worth individuals, particularly in luxury areas. While new supply may moderate rental growth in some regions, demand is expected to outpace availability in most markets, sustaining a positive trajectory into the new year.