In Dubai the rent on properties increased all through 2024 to 2025 and especially in middle range and low-priced regions. As population, interest of investors and need of property on rent increase, the real estate market in Dubai is gaining huge impetus particularly in places, which were earlier tagged as inexpensive. To expats, landlords, and investors, this is an experience of good returns and bountiful growth in the long-term.
Why Are Dubai Rents Increasing?
Next, the Dubai property market has gained pre-pandemic booms owing to:
- Expanded expatriates demand
- Tourist and temporary accommodation boom
- Reversal in world business activity
- Shortage of apartments in major renting areas
Increase in rental rates has found real estate investment more lucrative-more people will get into such investments particularly in areas that have not been given much attention.
Popular Budget-Friendly Areas with Soaring Rents
Deira
Deira is one of the most ancient quarters of Dubai, and the rent in this region has risen by no more than 48 percent, namely, in such apartments as two-bedroomed ones. It is popular as it can be explained by the following factors:
- Transport: nearness to markets, schools and metro stations
- The working professionals and families are high in demand.
Rent Breakdown in Deira (2025):
| Apartment Type | Min Rent (AED/year) | Max Rent (AED/year) |
|---|---|---|
| Studio | 27,000 | 50,000 |
| 1 Bedroom | 43,000 | 80,000 |
| 2 Bedrooms | 65,000 | 130,000 |
| 3 Bedrooms | 108,000 | 180,000 |
Example: A 2 bedroom flat that was rented SAR 45,000/year is currently rented at 65,000/year after a 48 percent rise.
Bur Dubai
Bur Dubai is a section, which has been a favourite amongst tenants because of:
- Close access to the metro
- Low prices of rents as opposed to posh areas
Rent Ranges in Bur Dubai (2025):
| Property Type | Min Rent (AED/year) | Max Rent (AED/year) |
|---|---|---|
| Studio | 25,000 – 30,000 | 50,000 – 60,000 |
| 1 Bedroom | 35,000 – 40,000 | 70,000 – 80,000 |
| 2 Bedrooms | 50,000 – 60,000 | 100,000 – 120,000 |
| Villas | 120,000 | 250,000+ |
Suburban Growth: Villas in Demand.
Due to increasing numbers of families relocating to Dubai, the need to stay in villas is increasing; particularly, in sub-urban areas, such as La Damac Hills 2 and Mirdif.
Damac Hills 2 Villa Rents:
| Bedrooms | Min Rent (AED/year) | Max Rent (AED/year) |
|---|---|---|
| 3 BR | 70,000 – 80,000 | 120,000 – 150,000 |
| 4 BR | 85,000 – 100,000 | 160,000 – 180,000 |
Mirdif Villa Rents:
| Bedrooms | Min Rent (AED/year) | Max Rent (AED/year) |
|---|---|---|
| 3 BR | 90,000 – 100,000 | 160,000 – 180,000 |
| 4 BR | 120,000 – 130,000 | 200,000 – 220,000 |
Key Drivers:
- Inexpensive villa living
- New gated communities that have schools, malls and parks
- Growing number of the working families
Dubai Population & Market Growth in 2025
The ex-pat population of Dubai will rise to over 4 million by 2025 putting further pressure on housing and rent stock. Experts project:
- Rent increase by 1020 percent in attractive locations
- Easily accessible housing at lows costs
- Great returns to the investors who will be the first ones to settle in the new areas of development.
Recommendation: On a longer-term, a pre-mid-2025 investment to capture lower rates and optimize appreciation can be done.
Best Areas to Invest in 2025
| Investment Type | Best Areas |
|---|---|
| Budget-Friendly | Deira, Bur Dubai, Town Square |
| Mid-Range Apartments | Jumeirah Village Circle, Business Bay |
| Luxury Properties | Dubai Hills Estate, Dubai Marina |
