Dubai Rents Rise Up to 53% as Market Shows Signs of Stabilisation in H1 2025
While long-term rents have seen a more measured pace of change, short-term rentals continue to enjoy steady demand across key residential areas.
Affordable apartment rents increased by 7% on average, though areas like Bur Dubai and Deira saw declines of over 6%. Mid-tier apartments recorded modest gains of 1% to 6%, while luxury apartment rents mostly dipped by up to 5%, except for a few pockets like Dubai Marina and Downtown Dubai where rents rose up to 3%.
Villa rentals showed sharper movements. Affordable and mid-tier villas rose by up to 9% and 7%, respectively. The luxury segment saw significant hikes of up to 53%, particularly in Dubai Hills Estate, driven by limited supply and high demand. However, 4-bed luxury villas posted declines of up to 9% in some areas.
Short-term rentals also maintained solid traction. Daily luxury apartment rents in Downtown Dubai and JBR averaged between AED 516 and AED 762. Palm Jumeirah topped the villa segment with daily rates averaging AED 6.96k — a 14.59% year-on-year increase.
According to Haider Ali Khan, CEO of Bayut and dubizzle, the influx of over 72,000 new units expected in 2025 is gradually easing rental pressure. He also noted a growing interest in homeownership, encouraged by stabilising prices, the Dubai Land Department's First-Time Home Buyer initiative, and agent support tools like TruBroker™.
News Source: Bayut
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