Demand momentum and population growth are driving stabilization of Dubai property rents

Real estate developers expect that the Dubai real estate market will maintain the strong sales momentum, and the start of delivery of many projects in 2025, which will enhance the supply and meet a large part of the demand, and this will have a positive impact on the stability of rental prices.

They confirmed to Emirates Today that rental returns will not decrease in Dubai after the delivery of new projects, with support from continued demand, increasing population, attracting foreigners, and establishing new companies in the emirate.

Rental return

In detail, the CEO of Standard Real Estate Management Company, Abdul Karim Al Mulla, said that “the rental return will not decrease, but prices may stabilize,” explaining that demand is constantly increasing, and Dubai has become a global center for investors, and the best in the region in the world. “This is evidenced by the exhibitions held there, and the number of companies, shareholders and exhibitors, which confirms that there is a strong base for investment.”

Al-Mulla added that “the economic recovery is significant and will maintain rents,” expecting rents to increase slightly by the end of this year.

Many projects

For his part, the Managing Director of Harbor Real Estate Company, Muhannad Al-Wadiya, said that “new real estate units are being delivered, and at the same time many projects are being launched,” pointing out that demand is increasing significantly, and the evidence of this is the large, noticeable crowding in Dubai, which reflects Increase in population.

Al-Wadiya pointed out that the demand for residential units in Dubai is higher than the supply, and this has an impact on the rise in rents, adding that “the supply of properties in the category of villas and townhouses does not meet the existing demand, which causes prices to rise.”

Al-Wadiya explained that the Dubai Urban Plan stipulates that about 1.1 million people enter Dubai and cannot live there, and the number will increase to 2.1 million people in 2040, pointing out that developers focus their projects on the luxury real estate category.

Real estate marketing expert, Alaa Masoud, said, “The delivery of the expected real estate projects will not affect rents in Dubai, because the population of Dubai and the number of visitors increases by about 200,000 to 300,000 people annually, and thus there is a need for 10,000 to 15,000 new apartments. “Every year.”

Masoud added, “The rental market in Dubai will only be affected in specific areas, but the most attractive areas, such as Downtown and Business Bay, and Al Jaddaf Village, will not be affected, and there may be a slight decline in areas densely populated with projects, such as Jumeirah Village and Arjan.” And Magan.”

Good chance

The general manager of Awad Gargash Real Estate Company, Raad Ramadan, said, “Real estate projects for rent are a good opportunity for the developer to achieve great returns,” pointing out that rents are affected with the entry of new real estate projects, but the momentum of demand in the Dubai market ensures that prices remain stable. Rents are high or stable.

Ramadan explained that high rents encourage many people to buy, which supports the demand for sales and purchases in new projects, which take years to start working.

New companies

For his part, the CEO of Stratum Real Estate Management Company, Saeed Abdul Karim Al Fahim, said, “The entry of new companies into the real estate market in Dubai increases demand in the market, which contributes to the rise in rental prices.”

Al Fahim added that there is a demand for new buildings, and there are those who want to move from one apartment to another at a reasonable price.

For his part, Chairman of the Board of Directors of Al-Waleed Investment Company, Mohammed Al-Mutawa, said, “The delivery of projects will have a significant impact on rents, but this year has witnessed an increase in the population at a greater pace than the pace of project delivery.”

Al-Mutawa expected that the year 2025 will witness the completion of many projects and the start of their delivery, which will enhance the supply in the market, and thus stabilize or decrease rental prices.