E-Paper
Sign In
Dubai rents to stay stable amid population growth, new visa policies, says top executive
Following a 4-year rally in property prices and rentals, the market is stabilising now as the growth rate is shifting gear from double-digit to single-digit growth in most areas
- PUBLISHED: Mon 5 May 2025, 12:58 PM
Dubai rents will remain stable on the back of demand from growing population and government-backed policies such as new visa and residency schemes that are attracting talent, a top industry official said on Monday.
Malek Al Malek, Group CEO of Dubai Holding Asset Management and chairman of the Investment Committee of DHAM REIT Management, said from a wider market perspective, “There has been stability around the growth of this market, especially the rental market.”
Recommended For You
He pointed out that despite a strong supply of new residential units, there is a “clear demand” for various residential products on the back of population growth, reaching 3.9 million.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Dubai Holding Asset Management’s portfolio comprises 35,700 residential units and serves more than 140,000 residents across 21 communities.
Following a four-year rally in property prices and rentals, industry players suggest that the market is stabilising now as the growth rate is shifting gear from double-digit to single-digit growth in most of the areas across the emirate.
However, some industry players suggest that a 10-20 per cent drop in rentals in the coming years is “healthy” for the market to maintain them at a fair level for the residents.
From an outlook perspective, Malek said they’re “still positive at the back of certain few structural reasons” such as population growth, strong economic outlook, government policies in terms of supporting diversification, visa schemes, talent attraction, and ease of doing business.
“All of these means business for residential REIT,” Malek said during a virtual conference on Monday after Dubai Holding announced that it would launch an initial public offering (IPO) of its Dubai Residential REIT on the Dubai Financial Market, selling 1.625 billion units. This represents 12.5 per cent of Dubai Residential REIT’s issued unit capital. The REIT IPO is the first public offering in Dubai this year.
Malek shrugged off any impact of a global trade war between the world's top economies on the local property market, saying "We're fully confident that we will not see the cycle of bust and actually growth in a rental market in a city like Dubai. We've been running this business for over 20 years and have seen a lot of volatility come and go. However, our strategies have always been a long-term investment, especially real estate residential.”
He stressed that the company has taken into account measures to make sure that the portfolio continues to deliver.
“We're confident that the fundamentals behind this residential REIT are definitely positive, and hopefully we capitalise on them as we progress.”
