UAE rents have risen by almost a quarter over the last 10 years
According to research by Property Finder, a real estate portal, between November 2023 and November 2024, the average rental price increased by 23.6 per cent across the country.
The average rental price increased by 33.0 per cent over five years (November 2019 to November 2024), driven by an influx of expatriates and an increase in rental contracts.
Rental properties continue to be popular across the UAE. For many residents, especially expats, renting offers flexibility without the long-term commitment of ownership.
While property prices have risen in some areas, renting often remains the more affordable option, especially for those prioritising location or lifestyle amenities. Many people also value the convenience of renting, with maintenance typically handled by landlords or property managers. This makes it easier to manage day-to-day life.
However, rental demand tends to vary across the UAE, with certain communities offering these benefits and more.
UAE's top rental hotspots
As of June 2025, Dubai garnered the most searches for apartments for rent on Property Finder. Sharjah and Abu Dhabi ranked second and third, respectively, in terms of page views, according to internal data on Property Finder.
Jumeirah Village Circle (JVC) has the highest number of page views for apartments for rent among the Dubai communities, with 214,607 page views. Jumeirah Beach Residence (JBR) stands out with 4,910 listings marked as favorites on Property Finder, more than any other area in the city.
Dubai dominates the market in terms of both rental activity and property availability, showcasing the high demand for apartments for rent in Dubai.
The communities with the most rental properties in Dubai are: JVC (9,092), Business Bay (5,631), Downtown Dubai (5,541) and Dubai Marina (4,933).
Of these popular rental communities, apartments make up an average of 96 per cent of the available units on Property Finder, highlighting the demand for apartments in Dubai.
The average yearly rent across all communities is approximately Dh86,222. Palm Jumeirah stands out as the most expensive community, with an average annual rent of Dh170,000.
Al Nahda, a community in Sharjah, has the lowest average yearly rent at Dh43,000.
Dubai recorded its highest listing at Dh1,500,000 per year and its lowest at Dh28,000. The average rent is Dh90,000.
Abu Dhabi's highest listing is recorded at Dh350,000 per year, and the lowest is Dh27,000. The average rent is Dh82,999.
Rental prices in the UAE have seen strong growth over the short and long term.
'Rental activity across the UAE reflects broader trends that include growing expat populations, economic opportunities, and shifting preferences in housing. Dubai leads in volume and variety, while Sharjah and Abu Dhabi offer competitive alternatives. As 2025 unfolds, renters will continue to look for communities offering the best price, location, and lifestyle,' a statement said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Today
21 hours ago
- Gulf Today
UAE court orders firm to pay nearly Dhs75,000 to ex-staffer after 10-year service
Al Ain Court for Civil, Commercial, and Administrative Cases upheld a ruling obligating a company to pay a former employee Dhs74,898 as end-of-service benefits and other entitlements. The employee had worked for the company for nearly 10 years, after which the company refused to settle his dues. The case began when the employee resorted to the Ministry of Human Resources to amicably resolve a dispute with the company but a settlement could not be reached, so the Labor Relations Department referred the dispute to the court. The employee then filed a lawsuit before Al Ain Court for Civil, Commercial, and Administrative Cases demanding the company pay Dhs25,000 in overdue wages, Dhs43,267 as an end-of-service gratuity, Dhs7,500 for unused annual leave, Dhs5,000 as compensation for lack of notice, and Dhs15,000 as compensation for arbitrary dismissal. He clarified that he had worked for the company for nearly 10 years and provided a copy of the employment contract as evidence. The court of first instance looked into the case, and the company's representative submitted a memorandum requesting the dismissal of the lawsuit. The court appointed an expert, and based on his report, the court ordered the company to pay the employee Dhs74,898.93. The company appealed the ruling to the Court of Appeal, requesting its cancellation and the dismissal of the lawsuit. It also requested that the employee be directed to take a decisive oath so the appeal was referred to the competent court, which approved the request for the decisive oath and the employee took the oath in the form approved by the court. Then the court noted that the decisive oath resolved the dispute and upheld the ruling.
Gulf Today
2 days ago
- Gulf Today
CBUAE imposes financial sanction of Dhs10.7 million on exchange house
The Central Bank of the UAE (CBUAE) imposed a financial sanction of Dhs10,700,000 on an exchange house, pursuant to Article (14) of the Federal Decree Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations, and its amendments. The financial sanction has been imposed after assessing the findings of an examination conducted by the CBUAE, which revealed that the exchange house failed to comply with the AML/CFT policies and procedures and Sanctions obligation. The CBUAE, through its supervisory and regulatory mandates, endeavours to ensure that all exchange houses, their owners, and staff abide by the UAE laws, regulations and standards established by the CBUAE to maintain transparency and integrity of the exchange houses industry and safeguard the UAE financial ecosystem. WAM
Khaleej Times
2 days ago
- Khaleej Times
The property playbook 2025: Inside the UAE's real estate reset
The UAE property market has always been a powerhouse of ambition and innovation, but 2025 marks a new chapter; one defined by precision, purpose, and a pivot towards long-term sustainability. No longer is success in real estate about chasing the biggest or most luxurious asset. Today's investor is discerning, data-driven, and highly attuned to lifestyle shifts. They're asking tougher questions, seeking smarter returns, and demanding properties that offer more than just four walls; they want flexibility, community, tech-savvy features, and enduring value. From the bustling mid-market hubs of Dubai to the quietly booming emirates of Ras Al Khaimah and Sharjah, the UAE's real estate scene is being redefined. Factors like hybrid work culture, affordability, branded residences, and energy efficiency are no longer perks; they're prerequisites. As government policies focus on urban planning, affordability, and smart city ambitions, developers and investors are recalibrating their strategies to stay ahead. Against this dynamic backdrop, BTR spoke to Hamdan Al Kaitoob, Senior Vice President of Sales and Marketing at Deyaar, and Cherif Sleiman, Chief Revenue Officer at Property Finder on what's next. Their exclusive insights unpack the forces shaping investor priorities from shifting buyer profiles and pricing sweet spots to geographic trends and the growing demand for tech-integrated, community-centric living. Exploring what it truly means to make a 'smart investment' in 2025 and why the smartest decisions start with understanding what people really want from their homes, their communities, and their futures. "In 2025, when people talk about 'investment-grade' properties, they're usually looking at a combination of location, design, and operational efficiency," says Hamdan Al Kaitoob of Deyaar. 'Prime locations near urban hubs, transport links, and essential amenities like schools and hospitals are key here. But now, properties that are move-in ready with modern tech and energy-efficient systems and feature flexible layouts, are catching investors' eyes. For instance, homes with keyless entry, high-speed Wi-Fi, and adaptable spaces for remote work are commanding higher rental yields,' he added. 'Investors are also prioritising properties with professional management and tech-enabled operations, which can boost revenue retention,' he said. Technological advancements in property management are making a notable difference. "AI-powered analytics and IoT-enabled smart buildings have helped reduce operational costs by up to 20 per cent," he adds, citing US firm Primior's findings. At Deyaar's Park Five, for example, wellness features, sustainable systems, and community-centric design reflect these priorities. Community vs independent living: What do Investors prefer? Investor sentiment is clearly leaning toward community-focused developments, notes Al Kaitoob. Post-Covid shifts in lifestyle have made mixed-use communities with residential, commercial, and recreational elements more attractive than ever. "Projects like Midtown and Park Five were designed to create opportunities for social connection," he explains. Shared spaces like rooftop gardens, co-working areas, and wellness zones are more than amenities; they're key selling points. Even Deyaar's new AYA Beachfront Residences in Umm Al Quwain reflects this trend with its community hub that combines dining, social, and recreational facilities. This mirrors a global movement towards boutique-style living; exclusive yet communal, offering connection without compromising on privacy. Flexibility is booming: "Absolutely, this segment is on the rise," confirms Al Kaitoob. Residences like DWTN Residences offer the prestige and amenities of top-tier hotels with the stability of private property ownership. It's a formula that's increasingly attracting high-net-worth individuals. Meanwhile, hybrid work culture has intensified the demand for flexible-use properties. "Park Five integrates outdoor coworking zones and wellness areas to serve both professionals and families," he says. The focus is clear: versatility, well-being, and functionality in one package. Investor priorities: It's no longer just yields Investors today are more strategic. While Dubai's healthy 6.31 per cent city-wide rental yield (Global Property Guide) remains attractive, they're also betting on long-term capital growth and resale potential, according to Al Kaitoob. "Our ELEVE project in Jebel Ali targets all three objectives: income, appreciation, and exit potential," Al Kaitoob says. Branded projects and those with green or smart certifications are especially appealing for their value retention and resale advantages. Hybrid work is now a real estate factor: The lines between work and home have blurred permanently. "Homes are now expected to be offices, gyms, and wellness retreats all at once," says Al Kaitoob. Deyaar has responded with properties like Park Five, which offers outdoor coworking and fitness centres. Their flagship DWTN Residences takes it even further with AI meditation pods, air yoga zones, and playrooms; reimagining what holistic urban living can look like. Globally too, apartments with convertible spaces are outperforming traditional layouts in terms of occupancy, he continues. Mid-market momentum: What the numbers say The Dh1-3 million bracket is powering the UAE's real estate momentum, says Cherif Sleiman of Property Finder. "It's consistently clocking over 8,000 transactions per month, double that of the sub-Dh1 million segment." Affordability has become a cornerstone of buyer decisions, especially after Dubai's government announced affordable housing initiatives aligned with the 2040 Urban Master Plan. "This segment contributes to about 30 per cent of monthly transaction value and shows high stability and mortgage activity," Sleiman adds. Apartment sizes in demand: Apartment living remains king, but size matters. Property Finder data shows that 34 per cent of renters are looking for one-beds, 30 per cent for two-beds, and only 11 per cent for studios. That means compact but practical spaces are in high demand, especially among first-time buyers and young families. Shift toward ready properties in mid-tier segment: There's a noticeable pivot away from off-plan properties in the Dh1-3 million range. "We saw a 5 per cent dip in off-plan interest and an 8 per cent rise in demand for ready units from January to May 2025 compared to last year," says Sleiman. While off-plan properties still have their appeal, especially with flexible payment plans, ready units are gaining traction for their immediate rental returns and reduced risk. Geographic hotspots: The unexpected winners Data from Dubai Land Department pinpoints several emerging communities leading the mid-market charge: Culture Village, Wasl Gate, and Motor City have seen transaction volume growth of over 100 per cent. Meanwhile, Jebel Ali, Al Safa, Al Wasl, and Wadi Al Safa 3 have each recorded over 50 per cent growth. Is oversupply a risk? "From a top-line perspective, we are not seeing an oversupply,' assures Sleiman. The market is healthy, particularly in the apartment category. Studio, one-bed, and two-bed options still dominate searches. Meanwhile, the villa and townhouse segment, which historically faced a shortage, is now seeing a healthy pipeline of new launches. International vs local demand: International interest in mid-market properties is robust, led by buyers from the USA, UK, India, Egypt, and Germany. Interestingly, Sleiman notes a rise in Ultra High Net Worth Individuals from these regions showing interest in premium offerings too, suggesting that Dubai's market appeal spans the full investment spectrum. Beyond Dubai: RAK and Sharjah surge forward Property Finder Data reveals that RAK and Sharjah are making quiet but powerful moves. Ras Al Khaimah recorded a 40 per cent spike in monthly interest from January to May 2025 compared to 2024, buoyed by big-ticket projects like Wynn Al Marjan Island. Sharjah saw an even more impressive 63 per cent surge. Improved infrastructure, expanding developer activity, and more accessible pricing have made it a standout for end-users and investors alike. Al Ain remains stable, an ideal choice for conservative long-horizon investments. Off-plan vs ready, primary vs secondary: What's the balance? "Investors are diversifying strategies more than ever," notes Sleiman. In 2025, off-plan deals average 3,200 monthly, still leading the charts, but down from a peak of 6,000 in October 2024. Ready properties are rebounding, averaging 2,400 deals a month, a sign that immediate yield and lower risk are gaining ground. Preference for primary properties is also strong, with transaction volumes 33 per cent higher than secondary sales. "Buyers are drawn to new designs, smart features, and long-term appreciation prospects," Sleiman says. As Hamdan Al Kaitoob puts it, "The post-pandemic investor is more informed, more selective, and more lifestyle-driven." And as Cherif Sleiman adds, "We're seeing the rise of a holistic investor, someone who balances financial logic with livability." Final take: Investing where vision meets value As 2025 unfolds, one thing is clear: UAE real estate is no longer about playing it safe or chasing trends. It's about anticipating lifestyle shifts, embracing tech-forward development, and aligning with a more holistic sense of value. The line between home and investment continues to blur, demanding that buyers consider emotional comfort alongside economic gain. Investors are becoming strategists, weighing mid-market affordability against premium branded experiences, choosing between ready convenience and off-plan potential, and eyeing new destinations like Ras Al Khaimah and Sharjah with fresh optimism. They're thinking beyond square footage; to connectivity, wellness, sustainability, and community. In this environment, the winners won't just be those who follow the data, but those who also understand the desires behind the demand. Whether you're a seasoned investor or a first-time buyer, the most important question in 2025 isn't just 'where?' or 'what?' it's 'why now, and for whom?' The answers, as this playbook reveals, lie at the intersection of insight, innovation, and impact. And in the UAE, the future of real estate isn't just being built—it's being reimagined. The 2025 property playbook is clear: the future of UAE real estate belongs to those who adapt quickly, think long-term, and invest smartly. What smart investors are doing now 2025 has introduced a far more nuanced real estate landscape. Gone are the days of single-strategy investment. Today's buyer wants:
