Short Term Rentals in Dubai May Increase in 2025 Also

Long Term Rental and Rising Property Prices

With long-term rentals like 6 months or more are also expected to climb by roughly 13%, some 2025 studies show an 18% increase in short-term rentals (up to 6 months) relative to 2024. According to some data, rental rates have risen by 16% on average starting this year. A Chief Business Development Officer of a company in Dubai has said that historically the low season like summer months declines while the popular season sees a peak in costs.

Rising property prices, an increase in new towers, and more transaction volume in both sales and rents point to projected natural development in the real estate industry. Driven by real estate sector development, the UAE Central Bank projects national GDP growth of 6.2% in 2025. As developers will keep concentrating on reasonably priced and mid-range real estate, the quantity of luxury projects is predicted to decline in 2025.

Rising property prices are intimately related with the increase in rental rates. Bayut claims that in the first half of 2024, Dubai's property prices rose by 41% and transaction activity rose as well. In the first half of 2024, Dubai finished around 43,000 real estate deals.

Rising Properties and Opportunities

As a lot of pre-sold properties in 2022-2023 will be completed, the market predicts that the housing supply will rise by around 182,000 units in 2025–2026. Of this, more than 76,000 units are supposed to be finished in 2025. Investors are renting increasingly costly homes and buying them to generate passive income as house prices climb. Tenant demand for both short- and long-term leases is always rather strong.

Renting long term is one of the better strategies to cut expenses since longer rental terms usually translate into reduced monthly rates. Particularly with reduced summer rates, a one-year contract might offer notable savings.

For instance, a three-month rental for a one-bedroom apartment in JLT from a good builder may cost AED 10,700 a month; a twelve-month rental for the same property costs AED 9,500.

Rising numbers of professionals from all around the globe are relocating to Dubai for business, which naturally increases rental rates. Drawn by job opportunities, better pay, good quality of living, and a good temperature, Dubai keeps seeing population increase. Dubai's 2040 Urban Master Plan projects a population for the city to reach 5.8 million. Demand for homes keeps rising as more professionals show up at such costs. Thus, the chances of increasing rental prices is projected to continue in 2025. 

Conclusion

Dubai is a busy location and people from all around the world come here to enjoy the luxury and amenities. Some brokers are saying that the rents of properties will increase in 2025 also which will carry the current situation of 2024 which is doing good for the growth of the property market in Dubai. Seeing good opportunities in the rental market a number of investors are buying luxurious properties in good locations of Dubai.