Over the past four years, Dubai's property market has experienced significant growth across all segments, driven by a growing population and increased investor interest.
Affordable areas have seen the sharpest rise in rental prices, particularly last year, as demand for budget-friendly housing surged amidst a broader rent increase.
Popular affordable areas like Deira and Bur Dubai saw rents rise by up to 48%, with 2-bedroom flats in Deira experiencing the highest increases. These communities offer strong rental yields, making them attractive to property owners and investors. Convenient access to key locations via the Dubai Metro and public transport further boosted their appeal.
Villa rents also saw notable growth, with affordable options rising by up to 44%. Damac Hills 2 and Mirdif emerged as key villa hotspots. Meanwhile, mid-tier apartment rentals rose by up to 41%, with Jumeirah Village Circle and Business Bay leading the charge. Luxury apartments grew between 5 and 25%, with Dubai Marina and Downtown Dubai remaining top destinations for high-end rentals.
Dubai’s real estate market has proven resilient, with the expat population expected to exceed 4 million by 2025, driving further housing demand. Affordable areas like Dubai Investments Park, Discovery Gardens, and Liwan reported the highest rental yields at 9-11%. Meanwhile, mid-tier and luxury segments saw yields ranging from 6% to 8%.
As demand continues to rise, Dubai’s property market remains poised for growth, offering exciting opportunities for both tenants and investors alike.
News Source: Khaleej Times
