Dubai’s residential rental market is expected to maintain stability in the near term, driven by population growth, government-led residency initiatives, and policies aimed at attracting global talent, according to a senior official from Dubai Holding.
Malek Al Malek, Group CEO of Dubai Holding Asset Management and chairman of the Investment Committee at DHAM REIT Management, said on Monday that despite an increase in housing supply, demand remains resilient across various segments of the market.
“There has been stability around the growth of this market, especially the rental market,” said Al Malek, highlighting Dubai’s expanding population, which has reached approximately 3.9 million residents. He noted that the consistent influx of people is supporting a “clear demand” for diverse residential options.
Dubai Holding Asset Management currently manages a portfolio of 35,700 residential units spread across 21 communities, accommodating more than 140,000 residents.
After four years of steady increases in property prices and rental rates, market experts say the pace of growth is now cooling. While some neighborhoods have transitioned from double-digit rental hikes to single-digit increases, others may witness moderate corrections. Industry voices have suggested that a 10 to 20 percent dip in rentals over the coming years would be a “healthy” adjustment to ensure affordability for residents.
Looking ahead, Al Malek expressed confidence in the market’s fundamentals, citing population growth, economic diversification, visa reforms, and Dubai’s business-friendly environment as key drivers of stability and investment.
“These factors mean continued opportunity for residential REITs,” he said during a virtual conference held after the announcement of the initial public offering (IPO) of Dubai Residential REIT on the Dubai Financial Market. The IPO, the first in Dubai this year, will offer 1.625 billion units — equivalent to 12.5 percent of the REIT’s issued capital.
Al Malek also downplayed the potential impact of global geopolitical tensions on Dubai’s property market. “We’re fully confident that we will not see the cycle of bust and growth in a rental market in a city like Dubai,” he said, pointing to over two decades of experience navigating market fluctuations.
“We’ve always adopted a long-term investment strategy, particularly in the residential real estate sector,” he added, reaffirming confidence in the REIT’s performance.
With strong fundamentals and structural support, Al Malek concluded that the Dubai rental market remains well-positioned for continued stability and sustainable growth.
