Dubai rent hikes to slow down in 2025 as property market set for record supply
The Dubai real estate is expected to stabilize in 2025, with rent increases slowing down. Industry executives attribute this to an abundant supply of new properties and the implementation of the smart rental index.
“The new index, which offers transparent and data-driven pricing mechanisms, will likely provide more accurate market insights, helping tenants and landlords make informed decisions. As new properties come online and more options become available, the increased supply is expected to temper the rapid price growth in recent years.
“Dubai’s property prices are expected to remain stable by 2026 as the market absorbs an estimated 163,000 new housing units between 2025 and 2026. This influx, driven by pre-sales from 2022 to 2023, is anticipated to balance demand,” said Manifest Real Estate.
“While minor price adjustments may occur, Dubai’s resilient market fundamentals, bolstered by economic growth and strategic investments in infrastructure and innovation, are expected to sustain investor confidence,” it said.
“Stabilisation in property prices, spurred by a record-breaking influx of over 72,000 new residential units, will provide a more balanced market environment. This stabilisation, paired with robust demand from global investors and end-users, reinforces Dubai’s standing as a premier global real estate hub and positions it for sustainable growth in the year to come,” said Christopher Cina, director for development sales and consultancy at Manifest Real Estate.
Property brokerage Haus and Haus said Dubai’s real estate sector is poised to maintain its demand into 2025, supported by ambitious infrastructure projects and sustained foreign investment.
To bring stability and avoid overheating in the real estate market, the UAE banks have been asked not to finance a 4 per cent Dubai Land Department (DLD) fee and a 2 percent brokerage fee for mortgages in Dubai but only the value of the property.
More than 9,000 units are scheduled for handover in the first quarter of 2025, with Sobha Hartland, Arjan, and JVC accounting for 41 per cent of this pipeline, said Manifest Real Estate.
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