Dubai’s rental market is expected to relax, here’s why

Dubai Real Estate News For Investors

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In 2025, Dubai’s second-tier areas like Jumeirah Village Circle (JVC), Jumeirah Village Triangle (JVT) , Arjan, and Sports City are set to draw residents from neighboring emirates. The shift is driven by factors including traffic congestion, rising rents in these emirates, and Dubai’s growing supply of affordable rental options in newer developments.

“Due to the increase in traffic amidst the growing population, motorists spend up to three to four hours a day while commuting between Dubai and emirates like Sharjah and Ajman during the weekdays.”

The cost of renting in Dubai’s tier-2 areas is becoming comparable to neighboring emirates. With over 40,700 units delivered in 2024 and 120,000 under construction, Dubai’s rental market is expected to relax, offering tenants more choices and reducing the need for long commutes.

Dubai’s world-class infrastructure, safety, and lifestyle amenities continue to draw residents. Its legal transparency allows global investors and tenants to navigate the market seamlessly, further enhancing the city’s appeal.

Dubai’s real estate market remains robust, with transactions quadrupling compared to 2014 while prices have risen only 15-20% above the 2014 peak. This signals a healthy market with strong demand and sustainable growth.

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