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Khaleej Times
6 days ago
- Business
- Khaleej Times
Dubai's short-term rentals surge as overall market shows signs of cooling
Dubai's short-term rental market is enjoying robust growth across all pricing tiers, even as the broader rental market begins to show signs of stabilisation amid an expected surge in new housing inventory. The shift reflects a maturing market where tenants are increasingly weighing short-term flexibility against long-term commitments, and where new government initiatives and increased supply are bringing balance to previously overheated segments. According to new data from Bayut and dubizzle, demand for both monthly and daily rental formats has remained strong, particularly in lifestyle-centric areas such as Dubai Marina, Downtown Dubai, Business Bay, and Jumeirah Village Circle (JVC). The growth comes even as the general rental market enters a more measured phase, following nearly two years of aggressive rental increases. Dubai's most searched rental areas in the first half of 2025 reflect this dual trend. While tenants are drawn to the flexibility and convenience of short-term leases, the long-term segment is cooling thanks to an expected delivery of over 72,000 new housing units this year. 'Dubai's rental market is starting to stabilise after a period of rapid growth,' said Haider Ali Khan, CEO of Bayut and dubizzle and a board member of the Dubai Chamber of Digital Economy. 'With more supply coming online, rents are easing, and tenants are benefiting from greater choice and affordability.' Luxury short-term rentals continue to command premium pricing. Monthly apartment rents in Dubai Marina, Downtown Dubai, and Meydan City now range from Dh7,180 to Dh16,310. In the villa segment, Palm Jumeirah and Dubai Hills Estate remain top choices, with monthly rents stretching from Dh93,330 to Dh171,430. This sustained interest in waterfront and upscale suburban living reinforces Dubai's global appeal as a luxury lifestyle destination. In the mid-tier segment, JVC leads for monthly apartment rentals with an average of Dh7,090, followed by Business Bay and Al Barsha, where studio and two-bedroom units start at Dh4,630. For cost-conscious tenants, International City, Deira, and Bur Dubai offer attractive options, with monthly apartment rents ranging between Dh3,080 and Dh12,990. Among villas, DAMAC Hills 2 (Akoya) is gaining traction for budget rentals, offering family-friendly homes from Dh12,960 to Dh15,750 a month. Daily rentals are also seeing consistent demand. Downtown Dubai, Jumeirah Beach Residence, and Dubai Marina are favourites for daily luxury apartment stays, with average rates between Dh516 and Dh762. Villas on the Palm Jumeirah command up to Dh6,960 per night — a 14.6 per cent annual increase, reflecting persistent demand for exclusive beachfront experiences. Mid-tier daily rentals remain active in JVC, Business Bay, and Al Barsha, with average rates from Dh384 to Dh472. JVC, in particular, saw a 5.6 per cent increase, averaging Dh415 per day. For affordable daily rentals, Bur Dubai, Deira, and Dubai Silicon Oasis offer compelling choices, with rates between Dh206 and Dh269. While Bur Dubai saw a modest 5.3 per cent decline, it remains a preferred destination for value-seeking renters. Bayut's Smart Rental Index also suggests long-term rents are reaching a plateau. While certain areas continue to see gains, the pace of rental hikes has slowed. Affordable apartment rents rose by 7 per cent, although select units in Bur Dubai and Deira saw decreases of 6.2 per cent. Mid-range apartments posted modest growth of 1 to 6 per cent. Interestingly, asking rents for luxury apartments dropped by 1 to 5 per cent overall, though some properties in Downtown Dubai and Dubai Marina bucked the trend with increases of up to 3 per cent. In the villa category, affordable units recorded gains of up to 9 per cent. Mid-tier villas rose by up to 7 per cent, but certain configurations in Al Furjan and JVC saw notable drops of up to 13 per cent. Luxury villas were more volatile — 5-bedroom units in Dubai Hills Estate surged by up to 53 per cent, driven by high demand and limited new inventory, particularly in premium enclaves like Palm Hills, Golf Place Terraces, and Maple. In contrast, 4-bedroom luxury villas saw price declines of 1 to 9 per cent. Area preferences also shifted slightly in response to price movements and supply dynamics. Bur Dubai and Arjan have become increasingly popular for affordable apartment rentals, while Mirdif and Damac Hills 2 lead in budget villa offerings. Among mid-tier options, JVC and Business Bay continue to attract steady demand. For luxury seekers, Downtown Dubai and Dubai Marina dominate the apartment scene, while Dubai Hills Estate and Damac Hills lead for high-end villas. Experts suggest that Dubai's evolving rental market — characterised by more measured long-term rates, growing short-term flexibility, and a spike in ownership interest — points to a more balanced housing ecosystem. Initiatives such as the Dubai Land Department's First-Time Home Buyer programme and the rollout of tech-enabled brokerage platforms are also nudging renters toward ownership. Property experts expect further shifts in the market as more units enter the pipeline in the coming quarters. But for now, the short-term rental sector is clearly thriving — fuelled by lifestyle demand, digital nomads, and the city's enduring allure as a global hub for work and leisure.
Daily Mail
02-07-2025
- Business
- Daily Mail
Housing market hits milestone not seen since 2009
The housing market has reached a milestone it has not seen for 15 years, and it could be good news for buyers. The number of newly built homes on the market is at the highest level it has been since 2009. Home builders are struggling to find buyers in the frozen housing market, as elevated interest rates disincentive existing owners moving, and keep mortgages out of reach for many first time buyers. Coupled with house prices remaining at their most unaffordable level in recent history, the result is an unusually high inventory of new-build homes available. Home builders are offering discounts and perks as they try to offload them, according to Marketwatch. The typical home buyer cannot afford to pay current prices and current interest rates on a mortgage. 'The big story in the housing sector remains the inventory situation,' Stephen Stanley, chief economist at Santander U.S wrote in a note to investors. Stanley says the inventory is now 'bloated' and has been since last spring when the market tends to pick up pace. Despite builders efforts to entice buyers, success has been limited, according to Oliver Allen, senior U.S. economist at Pantheon Macroeconomics. 'Mortgage rates remain too high for sales to climb significantly higher, while the softening labor market likely will limit the flow of potential home buyers,' Allen wrote in a note. 'With housing payments at an all-time high, many buyers are feeling priced out,' Redfin chief economist Daryl Fairweather (pictured) told earlier this year. 'But sellers still need to move, which means they're increasingly offering concessions to get deals done — especially on condos and townhomes.' Major builder Lennar have said they will look to lower prices in order to move its existing inventory. And Lennar is not alone. Around 30 percent of builders cut home prices in January, the National Association of Home Builders (NAHB) reported — by an average of 5 percent. 61 percent of builders also offered sales incentives in January, the NAHB survey revealed. Incentives include mortgage-rate buydowns and smaller floor plans. Sales of newly built homes did grow in 2024 compared to 2023, according to federal government data, but inventory remains elevated. By contrast, 2024 was the worst year for sales in 30 years for the resale home market. Inventory in the resale home category is also rising, up 16.2 percent from a year ago, which gives buyers more options too. The South and West of the country are the most attractive regions for prospective new construction buyers, a new report from revealed. The regions have larger shares of new build homes available on the market, lower new construction premiums, and more opportunities for mortgage rate buydowns, the report found.
Yahoo
11-05-2025
- Business
- Yahoo
Most baby boomers can't afford assisted living and are weighing on the housing market by staying in their homes, ‘Oracle of Wall Street' says
While baby boomers are collectively sitting on $75 trillion in wealth, that's not distributed evenly, meaning many can't afford to move out and instead must stay in their homes. That's weighing on the housing market by holding back inventory, according to top Wall Street analyst Meredith Whitney. Baby boomers are dragging on the housing market because most can't afford to move out of their homes, according to Meredith Whitney, the 'Oracle of Wall Street' who predicted the Great Financial Crisis. In an interview on Bloomberg TV on Wednesday, she said many cash-strapped Americans have been borrowing against their homes, and 44% of home-equity loans are being taken out by seniors, "which is counterintuitive. It's crazy, right?" That's contrary to the typical narrative of baby boomers sitting on vast amounts of wealth accumulated over their lifetimes, which spanned unprecedented economic expansions and stock market booms. As a result, seniors with a lot of money have an edge in the tight housing market, accounting for 42% of all homebuyers, while millennials account for 29% despite the younger generation being in the prime buying years. But while most buyers are boomers, it doesn't mean most boomers have a giant pile of cash. "I divide it into different cohorts," Whitney said. "So the senior which everyone thinks 'the boomers have all this money'—that's a small portion. Seniors are living paycheck to paycheck." To be sure, boomers collectively have $75 trillion of wealth. But that's not distributed evenly, and Whitney estimated that just one in 10 seniors can afford assisted-living facilities. As a result, many are forced to stay put and age in place, she added. (Stubbornly high mortgage rates also have created a "lock-in" effect where homeowners who got in the market when rates were low are now reluctant to buy a new home at today's elevated borrowing costs.) "This is one of the problems with the housing inventory," Whitney told Bloomberg. "They're staying in their houses longer because they can't afford to move out." Meanwhile, she expects the economy to slow amid President Donald Trump's trade war, especially in the retail and hospitality sectors, and predicted the unemployment rate will climb to 6% by this fall, up from the current level of 4.2%. That's still well below the 10% high that the jobless rate hit during the Great Financial Crisis, and Whitney doesn't see parallels between today's economy the one during the crisis. Part of the reason is because banks are much better capitalized now than they were back then, when sub-prime mortgages were weighing on banks' balance sheets. But she does see a "mild, medium" recession that Wall Street has yet to price in. "The big banks will not be involved now, but the consumer is already struggling and is going to struggle further. And that will translate into job losses," Whitney said. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-05-2025
- Business
- Yahoo
Most baby boomers can't afford assisted living and are weighing on the housing market by staying in their homes, ‘Oracle of Wall Street' says
While baby boomers are collectively sitting on $75 trillion in wealth, that's not distributed evenly, meaning many can't afford to move out and instead must stay in their homes. That's weighing on the housing market by holding back inventory, according to top Wall Street analyst Meredith Whitney. Baby boomers are dragging on the housing market because most can't afford to move out of their homes, according to Meredith Whitney, the 'Oracle of Wall Street' who predicted the Great Financial Crisis. In an interview on Bloomberg TV on Wednesday, she said many cash-strapped Americans have been borrowing against their homes, and 44% of home-equity loans are being taken out by seniors, "which is counterintuitive. It's crazy, right?" That's contrary to the typical narrative of baby boomers sitting on vast amounts of wealth accumulated over their lifetimes, which spanned unprecedented economic expansions and stock market booms. As a result, seniors with a lot of money have an edge in the tight housing market, accounting for 42% of all homebuyers, while millennials account for 29% despite the younger generation being in the prime buying years. But while most buyers are boomers, it doesn't mean most boomers have a giant pile of cash. "I divide it into different cohorts," Whitney said. "So the senior which everyone thinks 'the boomers have all this money'—that's a small portion. Seniors are living paycheck to paycheck." To be sure, boomers collectively have $75 trillion of wealth. But that's not distributed evenly, and Whitney estimated that just one in 10 seniors can afford assisted-living facilities. As a result, many are forced to stay put and age in place, she added. (Stubbornly high mortgage rates also have created a "lock-in" effect where homeowners who got in the market when rates were low are now reluctant to buy a new home at today's elevated borrowing costs.) "This is one of the problems with the housing inventory," Whitney told Bloomberg. "They're staying in their houses longer because they can't afford to move out." Meanwhile, she expects the economy to slow amid President Donald Trump's trade war, especially in the retail and hospitality sectors, and predicted the unemployment rate will climb to 6% by this fall, up from the current level of 4.2%. That's still well below the 10% high that the jobless rate hit during the Great Financial Crisis, and Whitney doesn't see parallels between today's economy the one during the crisis. Part of the reason is because banks are much better capitalized now than they were back then, when sub-prime mortgages were weighing on banks' balance sheets. But she does see a "mild, medium" recession that Wall Street has yet to price in. "The big banks will not be involved now, but the consumer is already struggling and is going to struggle further. And that will translate into job losses," Whitney said. This story was originally featured on
