Dubai: Rents increases slow down as more inventory comes online
Rent increases have started to slow down in Dubai due to new inventory, giving tenants more options, says real estate industry executives.
'We're seeing increased rental inventory online, reinforcing the trend of rent stabilisation in some areas in 2025. Tenants in these sectors now have more options and are increasingly price-sensitive, while landlords who price competitively secure tenants more quickly,' said Rupert Simmonds, director of leasing at Betterhomes.
Since rents have surged in recent years, Simmonds believes that 'minor fluctuations are part of a healthy market cycle.'
The drop in rents follows Dubai recorded its first monthly price decline in over two years in January 2025, signalling a long-anticipated shift toward equilibrium.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Property Monitor data revealed average prices falling by 0.57 per cent in January 2025 to Dh1,484 per square foot — the first drop since summer 2022. This cooling follows four consecutive years of unprecedented growth, during which prices surged by over 30 per cent in 2024 alone.
According to real estate consultancy and brokerage Asteco, the delivery of new supplies in 2024 was lower than anticipated, but projections for 2025 indicate a significant increase in inventory.
'Assuming the majority of this projected supply enters the market, a moderation, or even a reversal, of rental growth could be observed in specific communities and/or projects. Affordability factors are expected to fuel continued migration to the Northern Emirates in 2025, a trend that gathered pace in the second half of 2024,' it said.
Asteco projected that 63,900 apartments and villas will be delivered this year, compared to 33,625 in 2024.
Cavendish Maxwell, a real estate consultancy, earlier forecasted that 243,000 new units are in the pipeline for delivery by the end of 2027, with apartments accounting for 80 per cent of the future inventory. This will further ease pressure on prices and rentals in Dubai.
This will stabilise prices and rents and ease pressure on tenants.
Most of the future supply will come in Jumeirah Village Circle, where almost 25,000 units are set to be delivered between now and 2027, followed by Business Bay (16,000), Azizi Venice (13,500), Damac Lagoons (11,100) and Arjan (9,000).
Betterhomes data showed that the strongest rental growth was seen in apartments at Al Khail Heights, where rents increased by 6.6 per cent to an average of Dh66,900. Townhouses in Palm Jumeirah followed closely, with a 6.5 per cent rise to Dh127,300.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Etihad
17 hours ago
- Al Etihad
MOCCAE, Emirates Growth Fund to power UAE SMEs driving food security, AgriTech
1 June 2025 19:41 AL AIN (WAM)The Ministry of Climate Change and Environment (MOCCAE) has signed a Memorandum of Understanding (MoU) with Emirates Growth Fund (EGF) to catalyse the growth of UAE-based companies shaping the future of food, agriculture, and environmental agreement was signed during the Emirates Agriculture Exhibition and Conference 2025 in Al Ain in the presence of the Minister of Climate Change and Environment, Dr. Amna bint Abdullah Al Dahak, and the Vice Chair and Managing Director of EGF, Najla Al strategic partnership brings together two national entities committed to supporting SMEs operating in the areas of food and water security, agricultural innovation and local production, environmental technologies, and climate-aligned business MOCCAE and EGF aim to unlock new opportunities for UAE-based businesses to lead in building a more self-sufficient, sustainable, and resilient national securing the country's food supply to advancing environmental innovation, the collaboration reflects a shared vision of empowering the private sector to drive lasting MoU provides a framework for exchanging knowledge, co-promoting eligible companies, and showcasing success stories that align with the UAE's long-term climate and food security Al Dahak commented, "This partnership paves the way for achieving our shared environmental objectives aligned with the goals of the National Food Security Strategy 2051, and We the UAE Vision 2031. The private sector is a key component of our drive towards environmental resilience and food security.""By empowering SMEs working in food supply chain and environmental innovation we are laying a strong foundation for greater national self-reliance and a future-ready economy. The Ministry of Climate Change and Environment is dedicated to fostering holistic climate action across all sectors, ensuring future readiness and the ability to adapt to evolving global challenges."Al Midfa added, "EGF exists to support businesses solving national challenges through innovation and scale. Through this collaboration, we are not only providing patient capital but acting as long-term partners to founders. Our value creation approach brings strategic guidance, governance support, and access to networks. By focusing on agri tech and environmental innovation, we are investing in the building blocks of national resilience and self-sufficiency."Established with Dh1 billion in capital, the Emirates Growth Fund invests in UAE-based growth-stage companies operating in sectors of strategic importance to the nation. The Fund offers more than capital, providing long-term partnership to help scale businesses built to last.
Khaleej Times
a day ago
- Khaleej Times
Why millionaires are migrating to Dubai and what it signals
Amid intensifying global scrutiny of wealth and rising tax pressures, Dubai is emerging as a strategic base for high-net-worth individuals seeking long-term security, capital preservation, and global mobility, a new report says. Betterhomes' latest mini-paper, Dubai: No Longer a Pit Stop, But the Finish Line for Global Wealth, shows that in less than ten hours, residents can easily connect with major cities worldwide, whether it's for business or leisure, highlighting Dubai's strategic location and seamless access to global markets. 'Far from being a transient luxury hub, the city is becoming a permanent home for the world's elite, drawn not only by its favourable tax regime and political stability but also by its infrastructure, safety, and unmatched global access,' the report says. This shift reflects more than a property trend; it signals a structural recalibration of global wealth flows. As legacy cities like London, San Francisco, Hong Kong, and Paris grapple with rising taxes and growing instability, Dubai offers rare clarity: low tax, luxury lifestyle, and a robust infrastructure. In a world increasingly challenging wealth creation, Dubai stands out as a stronghold for the financially free, where wealth is not only respected but celebrated. Here, policies are designed to attract, not restrict, enabling individuals to safeguard their wealth, plan their legacies, and influence global markets from a secure base. As of December 2024, the UAE was ranked as the 14th largest wealth market globally, with 130,500 dollar millionaires, reflecting a 98% surge over the past decade, data shows. A historic migration surge Betterhomes anticipates a substantial surge of international wealth flowing into Dubai in 2025. This influx is projected to significantly reshape Dubai's standing within the global financial system. 2024 marked a significant peak in global millionaire migration, with over 134,000 individuals possessing at least $1 million in liquid investable assets relocating across borders. Early forecasts for 2025 suggest this figure will rise further, with approximately 142,000 high networth individuals expected to move internationally in search of security, stability, and opportunity. If even 5% of this cohort were to choose Dubai, the emirate would welcome an estimated 7,100 new millionaires, Betterhomes estimates. These are not transient tourists, but capitalised entrants arriving with substantial liquidity. At a conservative estimate, this would represent an inflow exceeding $7.1 billion (Dh26 billion), equivalent to nearly half of Dubai's total foreign direct investment for 2024. In a market defined by momentum and investor confidence, such capital inflows serve as both signal and catalyst. Diverse origins of wealth migration The origins of this capital migration are as diverse as they are strategic. Some arrive from East Asia, including Chinese entrepreneurs establishing offshore holdings in response to domestic policy shifts. Others are Vietnamese investors diversifying against rising political and economic uncertainty. From Turkey and Argentina come wealthy individuals seeking refuge from currency depreciation and systemic volatility. Even within established markets, such as the United Kingdom or the United States, Dubai is increasingly perceived as a pragmatic choice for capital preservation and growth, analysts say. These new arrivals are not mere spectators; they are institution builders, family office founders, and long-term strategists. They bring with them enterprises, teams, and a forward-looking mindset. Their presence underscores a growing recognition of Dubai not simply as a taxefficient jurisdiction, but as a platform for legacy, influence, and sustained wealth creation. 'Dubai's real estate market is no longer driven by speculation, but by strategic, long-term capital. We are seeing global wealth not just arrive, but anchor itself here, in branded residences, legacy properties, and high-quality developments built for permanence. As millionaire migration accelerates, the city's property sector will continue to evolve from a cyclical opportunity into a structural asset class. Dubai is not only a magnet for capital, it is becoming the benchmark for global residential investment,' said Louis Harding, CEO of Betterhomes.
Dubai Eye
2 days ago
- Dubai Eye
UAE introduces regulations on social media advertising under new system
Individuals advertising on social media will need to follow new rules under the UAE Media Council's latest comprehensive system that aims to "build public trust, protect audiences and improve the quality of online media content". That's according to an announcement from the UAE Media Council, which said it will also offer support to content creators through a three-year exemption from permit fees. The system aims to regulate, empower and stimulate growth in the media sector and builds on the Media Regulation Law and its Executive Regulation - issued last year. The Council will also implement an age rating system to ensure children and adolescents don't see "inappropriate" content. A new policy for licencing digital news platforms is also being developed that will establish "guidelines to enhance credibility, ensure adherence to journalistic standards, and promote responsible practices within a balanced legal framework". Those who caught violating the regulations could face warnings and fines of up to Dh1 million. With penalties doubled to Dh2 million for repeated violations. Additionally, temporary closure of up to six months or permanent closure may be enforced, along with the revocation of licences or permits. "The new system transforms the way the media sector is regulated and developed, as it combines updated legislation, comprehensive media services, and policies covering various sectors to enhance efficiency and sustainable growth," highlighted Mohammed Saeed Al Shehhi, Secretary-General of the UAE Media Council. In addition, it emphasises resolutions on media service fees, violations and administrative penalties. The system is also prioritising Emirati talent and creative projects within the national media strategy, with fee exemptions for several media services to support local producers, writers and creatives, encouraging content that reflects national identity.
