Q: The Dubai real estate market has been performing exceptionally well since the beginning of 2022. What are your projections for 2025?

Dubai’s real estate landscape is evolving at an unprecedented pace, creating vast opportunities for growth and investment. At Dubai Residential, we are at the forefront of this transformation—strengthened by the strategic integration of Nakheel and Meydan into Dubai Holding. This milestone has expanded Dubai Residential’s leasing portfolio to over 35,000 units across 20+ prime communities, serving a community of 140,000+ residents. As one of Dubai’s largest residential leasing portfolios, we are committed to supporting Dubai’s evolution and enhancing the quality of life for its residents.

The real estate market’s growth reflects Dubai’s visionary leadership, robust economic fundamentals, and commitment to creating a globally attractive urban environment.

Projections for 2025 remain highly optimistic, with continued expansion expected across residential, commercial, and mixed-use developments. Dubai’s population grew at an annualized rate of 3.8% between 2022 and 2024, a trend anticipated to persist as the Emirate aims to reach a population of 5.8 million by 2040. Demand for mid- and high-affordability residential segments is expected to rise, driven by economic growth, rising employment levels, and an influx of wealthy individuals. Additionally, expatriates are choosing to stay in the UAE for longer periods, aided by initiatives like the Golden Visa and the cost advantages of lease renewals, fostering greater market stability and sustained demand.

Key drivers supporting Dubai’s appeal include the D33 Economic Agenda, long-term residency programs, favorable tax policies, and sustainability initiatives like the Dubai Urban Master Plan 2040. Investments in green spaces, urban connectivity, and resource efficiency will drive long-term value. Dubai Residential is well positioned to leverage this growth, offering integrated living spaces with state-of-the-art amenities that align with Dubai’s vision for world-class, eco-friendly living.

Q: Do you anticipate that the increase in supply will impact prices in the future?

Over the past few years, demand for residential properties has outstripped new supply, contributing to a tightening market. This trend continued into 2024, with the first nine months registering 125,604 transactions—surpassing the entire 2023 total and positioning 2024 as another record year for Dubai’s property market.

Dubai’s strong economic fundamentals, strategic urban development, and high quality of life support its position as a top destination for both residents and investors. By 2030, approximately 212,000 new residential units are expected, fostering a healthy balance between supply and demand.

At Dubai Residential, we believe our portfolio is strategically positioned to withstand potential oversupply scenarios. Our integrated, resident-focused communities remain highly desirable due to their quality, modern amenities, and proactive management. With a strong focus on tenant satisfaction, controlled rent increments, and diverse offerings across various housing segments, we maintain a stable tenant base and high occupancy levels.

Q: How do you evaluate the performance of the rental sector in Dubai? What is your current rental yield, and what are your future expectations?

Dubai’s rental sector continues to perform strongly, driven by robust demand and the city’s global appeal. Between 2021 and 2024, rental rates saw significant growth, with apartment rents rising by 19.1% annually on a per sq. ft. basis, and villa rents increasing by 12.4%.

Dubai Residential has been a key player in this thriving market, consistently delivering competitive rental yields. Our portfolio maintains occupancy rates exceeding market averages in high-demand communities, ensuring stable rental income and long-term growth potential.

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