![\"Lewis](\"https:\/\/imgengine.khaleejtimes.com\/khaleejtimes-english\/2025-04-17\/54qwnrts\/Lewis-Allsopp-Chairman-of-Allsopp-Allsopp-Group.jpg?width=1200&format=auto\")
<\/p>\n\n\n\nRent has been rising post-pandemic on the back of a growing population in the emirate<\/p>\n\n\n\n
Rents in some Dubai communities have declined. Overall, however,\u00a0rents are increasing at a slower\u00a0pace.<\/p>\n\n\n\n
Real estate industry executives say that the era of double-digit rent increases is behind us as the market has matured. It is now seeing much more stable and gradual growth in rentals.<\/p>\n\n\n\n
Rents and property\u00a0prices have been rising\u00a0after the pandemic due to strong demand from a growing population, which is rising at an almost double-digit rate.<\/p>\n\n\n\n
Lately,\u00a0rents have been plateauing\u00a0after the four-year rally and industry insiders say that they are dropping in some areas. These include locations where\u00a0new supply has hit the market, and older buildings following the launch of the new Smart Rental Index.<\/p>\n\n\n\n
Lewis Allsopp, chairman at Allsopp & Allsopp, said there are signs that the emirate\u2019s rental market might be entering a period of adjustment.<\/p>\n\n\n\n
He said Allsopp & Allsopp’s data showed an 8 per cent decrease in average rental prices across both apartments and villas or townhouses month-on-month.<\/p>\n\n\n\n
<\/p>\n\n\n\n
Lewis Allsopp<\/p>\n\n\n\n
\u201cSpecifically, apartment rentals have seen a 9 per cent year-on-year drop. These figures suggest a shift in the market’s previous upward trend which could create a more balanced environment for both landlords and tenants.\u201d<\/p>\n\n\n\n
Rents in Dubai are likely to adjust because of a few things. The new\u00a0smart rental index\u00a0is a major factor, pushing landlords to keep prices fair. More new buildings mean more rental options too. Plus, with more tenants considering buying homes, landlords need to be competitive. All of this is working to balance the rental market.<\/p>\n\n\n\n
\u201cRents have already decreased from their peak in certain areas, with some achieving lower rents in 2025 compared to 2024. Villa communities like Nad Al Sheba and The Villa have seen a 7 to 9 per cent drop over the past 12 months,\u201d said Rupert Simmonds, director of leasing at Betterhomes.<\/p>\n\n\n\n
He added that communities with a high level of new supply are likely to experience declines starting in 2025, and continuing into 2026.<\/p>\n\n\n\n
\u201cWhile some rents have plateaued or even declined, others are still increasing. Prime areas such as Palm Jumeirah, Downtown Dubai, and Dubai Hills Estate have remained stable or risen due to high demand and limited luxury properties. Meanwhile, mid-tier and affordable communities like Jumeirah Village Circle (JVC), Dubai Sports City, and Discovery Gardens show signs of stabilisation,\u201d he said.<\/p>\n\n\n\n
![\"Rupert](\"https:\/\/imgengine.khaleejtimes.com\/khaleejtimes-english\/2025-04-17\/iuh9u9km\/Rupert-Simmonds-Director-of-Leasing-at-Betterhomes.jpg?width=1200&format=auto\")
<\/p>\n\n\n\n
Rupert Simmonds<\/p>\n\n\n\n
According to Simmonds,\u00a0luxury properties in prime areas\u00a0such as\u00a0Palm Jumeirah and Dubai Marina\u00a0will likely be less affected due to limited availability and the influx of high-net-worth individuals (HNWI) and ultra-high-net-worth individuals (UHNWI) moving to Dubai.<\/p>\n\n\n\n
Allsopp added that the trend of rising rents has\u00a0pushed many tenants towards home ownership, with the Dubai Land Department reporting a 30 per cent month-on-month decrease in rental renewals.<\/p>\n\n\n\n
\u201cThis is prompting landlords to reconsider rental pricing to attract new tenants. Additionally,\u00a0the Smart Rental Index\u00a0will likely put pressure on landlords of older buildings to lower rents if they don’t meet current amenity and finishing standards,\u201d he said.<\/p>\n\n\n\n
Rupert Simmonds noted that areas that are seeing a high volume of new unit handovers such as Dubai Creek Harbour, Mohammed Bin Rashid City, and Dubailand, could experience rent decreases. <\/p>\n\n\n\n
\u201cThis is because increased competition among landlords will likely put downward pressure on rental prices. Landlords who are inflexible may face more vacancies, increasing downward pressure on prices. Landlords should be flexible on price to ensure maximum occupancy and minimum void periods because that is where a landlord makes the biggest loss,\u201d added the director of leasing at Betterhomes.<\/p>\n\n\n\n
Joshua Nairn, leasing manager at Huspy Real Estate, believes the era of double-digit increases is behind us.<\/p>\n\n\n\n
He expects some fluctuations in communities experiencing mass handovers of new properties, as the increased supply could temporarily impact rents in those specific areas. However, overall, he doesn\u2019t foresee a decline across the city.<\/p>\n\n\n\n
![\"Joshua](\"https:\/\/imgengine.khaleejtimes.com\/khaleejtimes-english\/2025-04-17\/3apo82hf\/Joshua-Nairn.jpg?width=1200&format=auto\")
<\/p>\n\n\n\n
Joshua Nairn<\/p>\n\n\n\n
\u201cThe market has matured, and we are now seeing much more stable and gradual growth in rental prices,\u201d he said, adding that he doesn\u2019t foresee rents decreasing in Dubai\u2019s major communities.<\/p>\n\n\n\n
\u201cWith that being said, we may see fluctuations in specific areas or certain market segments, but I do not anticipate a widespread decline across the city. Given Dubai\u2019s strong market fundamentals \u2014 including population growth and economic stability \u2014 I don\u2019t expect significant declines in rent over the next couple of years, certainly not by 2025 or 2026,\u201d he added.<\/p>\n\n\n\n
Nairn added that new residential units are being introduced to the market, helping to balance supply and demand, potentially slowing down the rate at which rental prices increase.<\/p>\n\n\n\n
Fuente: Khaleej Time<\/strong><\/p>\n\n\n\n Published: 18 Apr 2025<\/strong><\/p>\n\n\n\n <\/p>","protected":false},"excerpt":{"rendered":" Rent has been rising post-pandemic on the back of a growing population in the emirate Rents in some Dubai communities have declined. Overall, however,\u00a0rents are increasing at a slower\u00a0pace. Real estate industry executives say that the era of double-digit rent increases is behind us as the market has matured. It is now seeing much more […]<\/p>","protected":false},"author":7,"featured_media":27820,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1621,1619,1620,1623,1622],"class_list":["post-27819","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-affordable-areas-in-dubai","tag-dubai-rental-market-trends","tag-property-price-adjustments-dubai","tag-real-estate-insights-uae","tag-rental-decline-communities"],"_links":{"self":[{"href":"https:\/\/elite-bricks.com\/es\/wp-json\/wp\/v2\/posts\/27819","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/elite-bricks.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/elite-bricks.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/elite-bricks.com\/es\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/elite-bricks.com\/es\/wp-json\/wp\/v2\/comments?post=27819"}],"version-history":[{"count":0,"href":"https:\/\/elite-bricks.com\/es\/wp-json\/wp\/v2\/posts\/27819\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/elite-bricks.com\/es\/wp-json\/wp\/v2\/media\/27820"}],"wp:attachment":[{"href":"https:\/\/elite-bricks.com\/es\/wp-json\/wp\/v2\/media?parent=27819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/elite-bricks.com\/es\/wp-json\/wp\/v2\/categories?post=27819"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/elite-bricks.com\/es\/wp-json\/wp\/v2\/tags?post=27819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}