The expected rise in rentals next year is attributed to the ongoing increase of professionals from all over the world relocating to Dubai for jobs and lifestyle reasons, as well as the emirate’s growing real estate values.
According to industry participants, with an average increase of 18% for short-term leases and upwards of 13% for long-term leases, 2025 looks to be another fantastic year for Dubai’s home buyers and investors. Foreign professionals choose Dubai as their new home while real estate prices continue to rise.
The anticipated increase in rentals is expected to further boost the demand for residential real estate in Dubai from buyers worldwide who want to maximise the average ROI on rental property.

Projected Rental Increases: 2024 Compared to 2025
According to Nina Novikova, Chief Business Development Officer at Colife Dubai, a division of the internationally operating real estate and rental services major Colife, “our forecasts for 2025 based on the latest transaction data and the current market trend are an 18% increase in short-term rentals (up to 6 months) compared to 2024, with long-term rentals (6 months or more) expected to rise by around 13%.”
According to Parag Bharat Parekh, CEO of PropertyPro Real Estate, a significant force in Dubai’s real estate services, Dubai rental market prices is predicted to increase by up to 25% in some locations in 2025 due to existing demand and trends.
Rents in Dubai will Increase by 20% in 2025
Financial forecasts predict that rental costs will jump 20% between 2024 and 2025 before continuing to rise further. Research shows a 13.5% rise in rental expenses from January through June this year.
The senior leader at Colife Dubai noted rental prices have grown by 16% across the first half year.
She explains that rental rates reach their highest point in peak season and drop during summer which serves as the lowest period.
According to Novikova, the real estate market in Dubai will likely expand organically, as evidenced by rising property values, more new tower construction, and an increase in the volume of sales and rental transactions.
“Rising property values drive up rental rates because of their connection to each other,” she stated.
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Dubai Real Estate Transactions: 2024 vs. 2025 Forecast
According to data processing by the Dubai Land Department (DLD), the property market experienced 48,000 sales during Q3 2024, totalling $32.67 billion (AED 120 billion). The industry expects developers to complete 76,000 residential properties before 2025.

Increased Housing Supply: Anticipated Impact on 2025 Rentals
Industry experts forecast that 182,000 new homes will enter the market between 2025 and 2026 because multiple home buyers started purchasing their houses at the beginning of 2022 and 2023.
Off plan properties in Dubai offer prospective investors an appealing means to optimize profits. These homes, which are frequently found in recently constructed master-planned communities, enable investors to buy at pre-construction prices and often result in higher returns on investment after the developments are finished.
As house values go up, Novikova says investors spend more money buying homes and increasing their rental rates to earn passive income.
She said tenants want rentals both for short and long periods now.
According to Novikova, as real estate values rise, investors pay more for homes and raise rent rates to create extra income.
Novikova reported that tenants keep showing high interest in renting houses both temporarily and permanently.
The Inflow of Foreign Visitors Fuels the Demand for Rentals
According to industry insiders, Dubai’s continued success as a significant international business and tourism destination is the reason for the anticipated increase in rental costs.
They stated that due to the influx of tourists and ex-pats, the Dubai rental market has been characterized by competitive pricing and high demand.
Short-Term Rentals: Impact of Events and Tourism
Parekh explains the 18% increase in short-term rent as Dubai’s development of tourist and business infrastructure attracts worldwide visitors and business professionals, as well as the boost in demand for flexible living spaces by professionals and IT specialists.
According to the CEO of PropertyPro Real Estate, “Different types of exhibitions and expos [in Dubai] have also stimulated the demand for short-term rentals, creating a competitive environment where prices are driven higher.” The CEO noted that the cost of a one-bedroom apartment in Downtown Dubai could reach over AED 10,000 per night for superior properties during these events.
According to Novikova of Colife Dubai, a one-bedroom apartment in Jumeirah Lakes Towers (JLT) from Colife costs AED 10,700 a month for a three-month rental, but for a twelve-month rental, the same property for rent in Dubai would only cost AED 9,500.
Long-Term Rentals: Increasing Relocation and Urban Growth
“As a result of career opportunities, competitive salaries, a warm climate, and a high quality of life, more professionals from all over the world are relocating to Dubai for work, which invariably raises rental prices,” she said.
Parekh of PropertyPro says the growing demand for long-term rentals shows how Dubai’s population and urban development have increased since COVID-19. The need for stable, long-term housing is predicted to rise as more individuals relocate to Dubai for jobs and lifestyles.
“It is important for potential tenants to be hopeful about this market because new residential developments and evolving expatriate residency laws are further influencing these trends,” he said.
However, Parekh stated that these anticipated increases have significant effects, particularly on budgeting, for individuals who are renting in Dubai or are considering moving there.
When making the family budget, tenants should account for possible increases in their rental costs.
“When planning budgets for the upcoming years, it is advisable to review personal finances and factor in these projections with a minimum increase of 13%, [and going] up to 25% in certain areas,” he said.
According to industry insiders, tenants can negotiate a better lease if they are aware of market trends.
They stated that these forecasts offer investors both chances and difficulties.
Given the anticipated increase in rental expenses, investors may discover profitable opportunities in creating properties that accommodate both long-term and short-term renters.
However, industry participants stated that changes in demand, regulation modifications, and economic swings can all affect rental yields.
“Remaining knowledgeable and flexible will be essential,” Parekh stated.
According to Novikova, “Knowing the implications of these projections will be vital for the success of both, whether you’re an investor looking for the next opportunity or a tenant looking for the best deal.”

The Role of Dubai’s Off-Plan Market
Dubai’s off-plan market, in addition to the best rental property in Dubai, is essential to satisfying the city’s expanding demand. To accommodate both experienced investors and first-time purchasers, developers are launching creative projects with adjustable payment schedules. Many of these developments incorporate sustainability features, coordinating with global environmental standards and enhancing their value to eco-conscious buyers.
Rental Yields: Comparing 2024 and 2025 ROI
With ROI on rental property of up to 10%, Dubai Sports City has become one of the most alluring options.
According to the most recent analysis, apartments in Dubai Investments Park, Discovery Gardens, and Liwan provide the best rental returns of up to 11% to buyers of inexpensive real estate.
Hotspots for Rental Yields: Shifts from 2024 to 2025
Based on anticipated apartment rental yields, Dubai Sports City, Dubai Silicon Oasis, and Motor City have become very desirable options, providing returns of up to 10%.
According to a first-quarter analyst, Green Community, Al Sufouh, and Damac Hills provided rental returns of more than 8%, exceeding benchmarks set by most international markets.
Compared to big cities like London, New York, Hong Kong, Mumbai, and others, where rental returns typically range between four and 7%, all of Dubai’s parts provide significantly greater rental yields. More significantly, the cost of prime real estate is substantially lower than in the majority of cities throughout the world.
Dubai’s real estate market is still promising despite ongoing global concerns, according to Haider Ali Khan, CEO of Bayut and head of Dubizzle Group Mena. The sector’s current trends, investment prospects, and growth strategies provide stakeholders confidence as they navigate its ever-changing landscape.
“New master communities and creative off-plan development strategies highlight Dubai’s resilience and attraction as a real estate destination. Fostering cooperation and strategic planning will be essential to maximizing returns and establishing sustainable growth in Dubai’s real estate industry as we face the possibilities and challenges that lie ahead,” Khan stated.
Buy-to-let villas and townhouses in International City have an average return on investment (ROI) of more than 7%, making them a desirable choice for possible investors. Likewise, investors should expect a return on investment of at least 6% from Damac Hills 2 and The Valley. The estimated return on investment (ROI) for mid-tier villas in Jumeirah Village Triangle, JVC, and Mudon ranges from 6% to 8%. Because of the unique features of the villas and the limited market supply it offers, The Sustainable City stands out in the luxury villa segment with a return on investment (ROI) of above 7%. Tilal Al Ghaf and Al Barari have strong ROIs of more than 6%.
A 17% Increase in Rent
According to a data study, affordable apartment rents rose from 1% to 17%, while mid-tier sector flats surged to 12%. On the other hand, UAE property for rent has dropped by as much as 4%.
On average, reasonably priced villas have decreased in price by up to 3%, whereas rental properties in Mirdif have seen increases of 1% to 7%. Some bed types in Jumeirah Village Circle (JVC) and Town Square have seen price reductions of less than 2%, while mid-tier villa rentals have seen rises ranging from 2 to 17%.
While four-bedroom homes in Al Barsha and Damac Hills have become comparatively more inexpensive by 12 to 14%, luxury villa rentals have increased by 13 %.
Deira and Al Nahda have become well-liked options for apartments among people looking for reasonably priced lodging, while Damac Hills 2 and Mirdif have drawn interest for villas. While homes in JVC and Arabian Ranches 3 have drawn villa-seekers, flats in Bur Dubai and Jumeirah Village Circle (JVC) have been in great demand among tenants in the mid-tier category. High-end villa rentals have been more popular in Dubai Hills Estate and Al Barsha, while apartments in Dubai Marina and Business Bay continue to be in high demand.