Umm Ziyaad

UAE Property: ‘Will the global tariff row affect Dubai real estate prices?’

Mario Volpi is head of brokerage at Novvi Properties and has worked in the property sector for 40 years in London and Dubai

Question: Will the Dubai real estate market be affected by movements in global stock markets, particularly with US President Donald Trump’s tariffs creating uncertainty? Should investors be worried? Should I wait to enter the market or will this not affect the Dubai property sector at all? JP, Dubai

Answer: Mr Trump’s strategy of increasing tariffs has two sides to it. While he is keen to address fairness of trade agreements for American goods and services, I believe, he has another agenda too, which is to create chaos to bring about instability in the short term so that banks and other governments counterbalance the threat of a recession or high inflation with potential cuts to interest rates (which will surely follow).

If this happens, the repayment of the US debt will be more manageable and there is a chance that he could come out of this smelling of roses.

For the Dubai real estate market, the only point of note is that if interest rates reduce, this will affect mortgage rates, given that the dirham is pegged to the US dollar. This could lead to cheaper UAE mortgages, thus adding to the attraction of properties.

Therefore, I believe, the Dubai real estate market is in good shape, given that it is currently underpinned by proper fundamentals rather than speculation, so it should not be adversely affected by the tariff row at present. In fact, tariffs could benefit Dubai in the long run.

Q: My rental contract renews in August but I am planning to leave Dubai for good in November this year. Can I negotiate with my landlord to have a three-month extension, or will I have to move out and move into short-term accommodation? HP, Dubai

A: It is possible to negotiate with your landlord, but the likely outcome will come down to how good your professional relationship is and your powers of persuasion.

The first thing I would do is to inform your landlord, giving him/her as much notice of this as possible. You do not mention how long you have been renting the property for, so it is difficult to say how this decision may impact the landlord at this point. However, try to meet face-to-face as this may help when explaining your predicament and to agree to a date.

I would also look at the rental index to see what the renewal rental price would be, to see if the landlord is entitled to an increase. This will also help you to work out what a monthly amount will be for the extra three months.

It is preferable not to have to move twice, so be as generous with the extra monthly rate as you can, remembering that the landlord does not have to agree to this at all.

If you cannot agree on any terms or if the landlord does not allow for the extension at all, you will have to seek short-term accommodation for the remaining three months to November.

Q: I am currently in rented accommodation in a tower in Dubai but recently, water started to drip through the bathroom ceiling. Fortunately, it is dripping right into the bathtub.

I spoke to the tenants of the apartment above, but they were very unhelpful and did not give me their landlord’s details. I think there was also a language barrier. I am at a loss to where to turn to now. What should I do? PT, Dubai

A: Given the leak is dripping into your bathtub, it gives you a bit of time to resolve the issue.

My advice would be to go and speak to the building management to inform them of the situation. They will contact the landlord of the apartment above. If it is easier, you can also involve the security staff to assist you in this regard. I am sure they will try to resolve the dripping to stop any further damage.

If your property is managed, I suggest you contact the property management department of the agency you rented through and let them deal with this directly.

Philly2dubairealtor,……………….

Re-Blogged via The National

Dubai Real Estate Transactions For The Week Of April 7th 2025

Transactions reached a total of 14.3 Billion AED in the week of April 7th 2025 in both Offplan and secondary market sales

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If you are searching for residential properties to buy either offplan or ready Properties in the UAE, we will give you options to suit your budget.

Contact Us for more information , to book a unit or consultation session on WhatsApp +971 55 134 8912

Philly2dubairealtor………..

Dubai’s millionaires double as London drops down wealth list

New report highlights how world’s wealthy are increasingly heading to investor-friendly Dubai

The number of millionaires living in Dubai has doubled in the past decade, making it one of the world’s fastest growing wealth hubs, a new report shows.

The World’s Wealthiest Cities Report 2025, conducted by New World Wealth for Henley & Partners, also shows a shake-up of the traditional order, with millionaires leaving London in their thousands.

Their departure comes alongside changes to the tax status of non-doms – people who live in Britain but whose permanent home for tax purposes is outside the UK. Under the old rules, non-doms were liable to pay tax on money they made in the UK, but could live in the country without subjecting their overseas income to British tax rates.

According to the latest data, published on Wednesday, which is for 2024 and in US dollars, Dubai now has 81,200 millionaires, 237 centimillionaires, whose wealth is in the hundreds of millions, and 20 billionaires. The previous year, there were 72,500 millionaires, 212 centi-millionaires and 15 billionaires.

Cities for millionaires

Number of millionaires per year

Source: New World Wealth • Data as of December of each year

In the past decade there has been a 102 per cent increase in the number of millionaires in Dubai. Only the Chinese cities of Shenzhen and Hangzhou have seen higher growth, of 142 per cent and 108 per cent respectively.

The UAE attracts more migrating millionaires than any other country, according to previous data from Henley & Partners, an investment migration advisory firm. Almost twice as many millionaires moved to Dubai than to the next most popular country, the United States.

Andrew Amoils, the head of research at New World Wealth, said a number of factors make Dubai an increasingly attractive destination for the wealthy. “It’s very safe and it has a highly diversified economy, so it appeals to all sorts of entrepreneurs,” he told The National. “It’s a good place to start a business and it’s a good place for investors to be based.”

Mr Amoils said the UAE’s “most competitive tax rates in the world, with no capital gains tax and no income tax” encourage business formation and also appeal to wealthy retirees. As well as the UAE’s financial attractions, a “first-class healthcare system”, Emirates airlines serving vital financial centres, good schools and year-round leisure activities are also powerful draws for the world’s wealthy, Mr Amoils explained.

“There is a very strong link with Europe and the UAE, and I don’t really see that breaking apart any time soon,” he said.

The report also shows that 11,300 fewer millionaires were living in London in 2024 than in the previous year. Over the past decade there has been fall of 12 per cent, and of the world’s 50 wealthiest cities only Moscow, with a decrease of 25 per cent, has lost more.

More millionaires moving to Asia and the Middle East

Top 50 cities for millionaires ordered by millionaire growth over the last decade

Source: New World Wealth • Data as of December 2024

Sam Bidwell, the director of research and education at the Adam Smith Institute, says there are a number of reasons why millionaires are leaving the UK. “High tax rates, a challenging business environment and declining public safety are all contributing factors,” Mr Bidwell has written in The National. “For many millionaires, the government’s decision to abolish the non-domiciled tax regime last year will have been the straw that broke the camel’s back, pushing them to finally relocate.

“In an increasingly competitive world, the success or failure of international cities will largely depend on their ability to attract high-quality people,” he said. “While London and the UK are driving away wealth through excessive taxation, Dubai is taking the opposite path. Don’t be surprised to see more British individuals – and more British businesses – setting up shop on the shores of the Creek in the years to come.”

Philly2dubairealtor,……………..

Re-Blogged via The National

Dubai realty continues to ride a wave of resilience

Dubai Marina holds its throne as the go-to spot for high-end apartments

A boat ferries passengers past the Dubai Marina.

Dubai’s property market is riding a wave of resilience and reinvention in the first quarter of 2025, blending robust demand for ready homes with a thriving off-plan sector.

Buoyed by a surge in investor confidence, a steady stream of tourists, and savvy government moves that keep this megacity a global investment darling, Dubai’s real estate scene continues to dazzle.

Haider Khan, CEO of dubizzle and Dubizzle Group Mena, sums it up: “Favourable conditions, high rental yields, and strategic initiatives have further enhanced Dubai’s allure.” The numbers back him up—sales are spiking, rentals are trending upward, and the market feels unstoppable.

Luxury properties remain the crown jewels. Dubai Marina holds its throne as the go-to spot for high-end apartments, with average sales prices hitting Dh2.52 million and rents averaging Dh139,000. For villas, Dubai Hills Estate steals the show, commanding a hefty Dh17.77 million average sales price, while Al Barsha tops the rental charts at Dh448,000 annually. Investors are cashing in too — Dubai Hills Estate boasts a 6.95 per cent return on luxury flats, and Damac Hills delivers 5.62 per cent for villas.

ValuStrat’s Dubai Price Index (VPI) for March paints an even rosier picture. Villa values climbed two per cent month-on-month and a whopping 30.3 per cent year-on-year. Hotspots like Jumeirah Islands, Palm Jumeirah, and Emirates Hills have soared over 40 per cent in a year, now sitting 165 per cent above post-pandemic levels.

Apartments are not far behind, posting a solid 1.2 per cent monthly gain and 21.4 per cent annual growth, though most still linger eight per cent below their 2014 peaks. Exceptions like JBR, Palm Jumeirah, and The Greens have already surpassed those highs, signaling a selective recovery.

Off-plan sales, the market’s driving force, accounted for nearly 70 per cent of transactions, despite a 7.4 per cent dip in registrations from February. Ready homes saw a 2.4 per cent monthly drop but remain 1.1 per cent up from last year—a testament to enduring buyer appetite.

Luxury’s shine hasn’t dimmed either, with 23 homes above Dh30 million changing hands across Dubai Hills Estate, Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island.

The mid-tier market is equally vibrant. Jumeirah Village Circle (JVC) reigns supreme for apartments, with asking prices averaging Dh1.18 million and rents at Dh79,000, while Al Furjan leads for villas at Dh5.8 million sales and Dh 322,000 rents.

Al Furjan has emerged as a favourable choice for mid-tier villas with a yield of 8.37 per cent, and JVC villas hit 8.29 per cent. On the affordable end, Dubai Silicon Oasis (DSO) draws buyers with Dh 1.03 million sales prices, while International City lures tenants at Dh52,000 rents.

Damac Hills 2 (Akoya by Damac) dominates affordable villas, averaging Dh1.96 million to buy and Dh118,000 to rent. Dubai Investments Park steals the ROI crown, offering 8.79 per cent for apartments and an eye-popping 12.16 per cent for villas.

However, the VPI’s 1.6 per cent monthly growth in March—the slowest in nearly two years—hints that Dubai’s breakneck pace might be easing, realty market analysts said. “After years of steep climbs, could this be a breather? For now, the market straddles a dynamic line: luxury thrives, mid-tier and affordable segments hum, and off-plan keeps the engine roaring,” they said.

Philly2dubairealtor,……………….

Re-Blogged via Khaleej Times

Dubai now among 20 wealthiest global cities

Around 81,200 millionaires, including 20 billionaires, call Dubai their home

More than 81,000 millionaires call Dubai their home now. It all helps in the city breaking through to the Top 20 rankings of ‘wealthiest cities’.

Dubai has officially entered the ranks of the world’s top 20 cities for wealth, now home to 81,200 millionaires, including 237 centi-millionaires (those with wealth exceeding $100 million) and 20 billionaires.

According to the ‘World’s Wealthiest Cities Report 2024’ issued by Henley & Partners in collaboration with New World Wealth, Dubai climbed three spots, ranking18th globally in terms of the number of wealthy people residing in the city.

The report highlights Dubai’s continued rise as a leading global hub for investment, business, and high-net-worth individuals, cementing its status as a premier destination for wealth and prosperity.

Dubai also toped Arab cities in wealth rankings, becoming one of the fastest-growing cities globally for millionaires. It has secured the top place in the Arab world and climbed from 21st to 18th place globally on the list of the world’s wealthiest cities for 2025, according to the latest report.

Over the past decade, the city recorded an impressive 102 per cent growth in the number of millionaires, making it the third-fastest growing city in the world for high net-worth individuals (HNWIs), trailing only Shenzhen and Hangzhou.

The report revealed that Dubai attracted 8,700 new millionaires, who only, increasing the total number of HNWIs in the city to 81,200 by the end of 2024, up from 72,500 in 2023.

The number of ultra-wealthy individuals in Dubai—those with a net worth exceeding $100 million—rose to 237 by the end of 2024, up from 212 in 2023, reflecting the emirate’s growing appeal as a global wealth hub.

Meanwhile, Abu Dhabi witnessed a significant surge in its millionaire population over the past decade. Between 2014 and 2024, the capital recorded an 80 per cent increase in the number of millionaires, reaching 17,800 by the end of 2024.

Abu Dhabi is now home to approximately 75 centi-millionaires (individuals with a net worth of over $100 million) and 8 billionaires, underscoring the emirate’s rising profile as a centre for wealth creation and investment.

Dubai, currently home to 237 centi-millionaires, and Abu Dhabi, with 75 centi-millionaires, top the list of cities projected to witness significant growth in ultra-wealthy residents over the next decade.

The number of wealthy people with a net worth exceeding $100 million in both emirates is expected to double by 2034, driven by the region’s sustained economic growth, investor-friendly climate, and strategic vision for the future.

This projected wealth boom reflects a broader shift in the Middle East’s financial landscape, as Dubai and Abu Dhabi strengthen their positions as global wealth hubs—bolstered by favourable tax regimes, robust infrastructure, and progressive economic reforms aimed at attracting high-net-worth individuals and international investors.

Philly2dubairealtor,…………….

Re-Blogged via Gulf News

UAE Property: ‘Can my tenant sub-let my apartment?’

Mario Volpi is head of brokerage at Novvi Properties and has worked in the property sector for 40 years in London and Dubai

Question: We have been informed by our neighbours that our tenant is sub-letting our apartment. When we asked him, he said the people are his friends and are staying as guests. What are our options?

Answer: Sub-letting a property is illegal unless the landlord is aware and has allowed it. Your issue can be a problem if the friends stay over an extended period of time, so this will need to be investigated further.

I suspect you are going to have to be patient and perhaps enlist the help of others in the building such as the concierge or security guards on duty. The main proof will be if your tenant is also staying at the property, if so, this would aid his story. However, if the tenant is not seen by the building’s team, you could then have further proof that he may be sub-letting because it would seem odd he’s allowing friends to stay in the apartment and not be there himself.

This process is not potentially going to be quick, as you will need to gather enough evidence to prove one way or another what exactly is going on.

Going forward, if you do gather this evidence and it proves that he is sub-letting, you can confront him again or file a case at the rental dispute centre to proceed to a judgement.

Q: My current tenancy contract ended on March 28. I received a renewal notice with a 15 per cent rent increase as per the Real Estate Regulatory Authority index on November 6, 2024, with the index copy attached to the letter. This was almost five months from the contract end date.

However, when I checked the index recently, it shows a rent increase of only 5 per cent. What are my options? BW, Dubai

A: This has become an issue since the rental index has had a major upgrade from January 1 this year. Anyone who consulted the index before this will most likely get a different result when revisiting it in 2025.

The reason for the difference is in how the index is now being calculated as there have been a few changes, but the main one is due to the rating or classification of apartment buildings, which are now graded from one to five stars.

So, I suspect the reason for the decrease in the rent increase percentage amount from last year is due to the index assessing the current classification of your building, which is lower.

I would advise you to stand firm in what the index states today because the law mentions that while it can be done earlier, the renewal rental amount should be agreed upon renewal.

Q: I was recently allotted a unit in an Emaar project in Dubai South with a golf course view. I have already paid Dh37,000 ($10,074), which I was informed was non-refundable.

I am confused about the real estate market in Dubai South. Should I proceed with the property purchase process or book losses of Dh37,000? DA, Dubai

A: Firstly, it appears that you have paid what is known as an expression of interest (EoI). An EoI is how a developer starts the sales process for an off-plan project before the escrow account is set up or in place. It is a perfectly legal way of effectively locking in a unit.

Once the escrow is in place, you will be asked to choose a unit number and proceed to pay the 20 per cent Dubai Land Department fee plus 4 per cent (for the title deed or Oqood) and sign the sales and purchase agreement thereafter.

In most cases, EoIs are fully refundable should the buyer decide not to proceed with a unit or if a unit was not able to be allotted.

Dubai South is an area that is expected to grow exponentially. Despite the apparent distance of its location, the area will see robust real estate growth mainly due to the Al Maktoum airport, which will become the world’s largest and be a huge draw for real estate investors and users alike.

Therefore, I urge you to continue with your investment and by the time the unit is handed over, I’m confident that you will have witnessed amazing capital growth. Additionally, if you were to rent the unit out, you will also benefit from good rental income.

Philly2dubairealtor,………………..

Re-Blogged via The National

Dubai’s property market sees demand surge for furnished ready – and offplan – homes

New wave of buyers pay top dollar for fully kitted out homes that they can rent out ASAP

There is a boom time on for furnished apartments in Dubai, especially in the happening locations. Developers and sellers are making it easier by offering generous payment terms too.

Dubai: Want to cash in some more from Dubai’s continuing property boom? Then, have a look at the increasing number of offers on ready or near-ready apartments for sale at some of Dubai’s happening residential locations.

And here’s another incentive – these apartments are being offered fully furnished. The idea being that the developer or seller is reducing the time for the buyer to take delivery of the unit and then kitting it out. In effect, by buying an apartment fully furnished, the buyer can start renting it out with immediate effect. (Or move in for their own use, if that’s the purpose.)

Sure, these ready or ready to move in units with all the trappings come at a premium, but right now, investors want to limit any time taken to get returns on their spending. “We have seen units that are to be handed over in 3 months being bought – the best part is that the buyer already has a tenant for it,” said an estate agent. “The market is seeing a clear rise in offers for ready/soon to be ready apartments – not just from developers but from existing owners who want to cash in.”

"In today’s fast-paced market, fully furnished, ready-to-move-in apartments offer investors a distinct edge—they eliminate downtime, generate immediate rental income, and are increasingly sought after by tenants looking for convenience and style. At Imtiaz, we design our projects to deliver not just homes, but high-performing assets."

Sources add these buyers are looking for shorter-stay tenants, whether that’s under a year or for a year or two max. In some cases, the future rental payments are made by the tenant’s employer.

Property market sources say there are two sub-trends playing out:

•One, increased demand for Grade A and super-premium offices, some of which could be completed in the next 12-18 months.

•Two, for furnished homes in and around some of the newer premium office towers.

Essentially, one set of demand is laying the ground for another.

“In areas such as Downtown Dubai & Business Bay, high quality furnished one-bedroom units can typically rent for Dh100,000 to Dh150,000, while two-bedroom units can command Dh170,000 to Dh240,000 annually,” said Aakarshan Kahthuria, Managing Director at RiseUp consultancy.

“In these areas, the rental premium is driven by expats – typically white-collar professionals – putting immediate occupancy as their first criteria and focusing more towards hassle-free living.”

At Palm Jumeirah, furnished one-bed units can command Dh140,000 to Dh180,000, while two-beds are Dh250,000 to Dh320,000 per annum, particularly ‘when matched to a super-prime address’.

Now, those sort of numbers – and future yields – are just the sort that investors want to sign up for.

No longer selling ‘plain vanilla’

This explains the sheer number of branded serviced residences projects that were launched in Dubai – and Abu Dhabi too – in the last 2 years. The current trend is for non-branded projects to offer the option of furnishing the units as part of the sale and purchase agreement.

“Traditionally, offplan properties dominated the market due to flexible payment plans and potential for higher returns,” said Vasilii Fetisov, managing partner of Housebook Real Estate. “However, the demand for ready properties has been on the rise, leading developers to respond accordingly.”

Which means that offers of easier payment plans and lower down payment are now available on ready or soon to be ready units too. That, in itself, has been a game-changer allowing even individual property owners to match offers from developers when it comes to finding a new buyer.

“Furnished apartments are particularly appealing to those looking to relocate swiftly or investors aiming for prompt rental income,” said Fetisov. “This convenience often results in a premium on such units.

“For instance, in areas like Emaar Beachfront, property owners have observed resale premiums of up to 120% compared to the original purchase price from 2-3 years ago. Similarly, properties in DIFC Living have seen approximately a 15% increase in resale value vs. the original price.”

A new cohort of property buyers in Dubai are hoping to match those returns in due course. For now, they are looking at a ready or soon to be ready home with furnishing.

New trends will help Dubai real estate

A real estate market, especially one that’s been growing for more than 3 years now, is always on the lookout for new growth engines to continue the momentum. If there is sufficient build up in demand for ready homes, then it’s just what the Dubai property market needs. Because the new buyers can readily tap into new pockets of demand for renting out in instances where they don’t plan to be end-users.

Premium for furnished homes

Dubai’s real estate market is recording a ‘notable shift’ towards ready-to-move-in, furnished apartments. That being the case, such properties command ‘significant premiums’ stemming from their immediate usability. Developers in Dubai, never ones to miss an opportunity, are backing this with targeted offerings and flexible payment plans to meet the demand.

Philly2dubairealtor,……………….

Re-Blogged via Gulf News

Land deals lead the way in Dubai real estate market

Sector recording total sales worth Dh142.7 billion in Q1, the second highest quarterly figure on record

The first quarter of 2025 saw significant year-on-year increases in all Dubai real estate sectors.

Land deals emerged as a major factor in Dubai’s real estate market in the first quarter, recording a 193.8 per cent jump in plot sales worth Dh35.5 billion from 2,926 transactions.

Dubai’s real estate market has continued its buoyant start to 2025, recording total sales worth Dh142.7 billion in Q1, the second highest quarterly figure on record.

This represented a 30.3 per cent year-on-year leap in value, while the 45,485 overall sales transactions also meant a 22.8 per cent year-on-year increase.

A market update issued on Thursday by fäm Properties revealed that the Q1 results were only fractionally down on the all-time quarterly sales record of Dh147.2 billion from 50,218 transactions in Q4 2024.

Data from DXBinteract shows villa sales were up by 43.1 per cent year-on-year to Dh41.3 billion from 8,369 deals, while apartment sales rose by 12.6 per cent to Dh62.3 billion from 32,884 transactions. Commercial sales were also up by 25.2 per cent to Dh3.6 billion from 1,212 deals.

Rising property values in recent years were highlighted by a Q1 median price of Dh1,563 per sq ft, compared with the Q1 rates of Dh889 in 2021, Dh1,124 in 2022, Dh1,283 in 2023 and Dh1,497 last year.

The rise in land deals underscores the shrinking size of the availability of land in the emirate, experts say. “The reality is that plots for real estate development in Dubai are increasingly difficult to find, and this has led to land prices in the city soaring in recent years. Compared with COVID times, land prices have increased three or even four times in some areas, driven also by the exceptionally high demand we’re witnessing today in off-plan sales. Obviously, off-plan sales are carried out by real estate development companies, which cannot exist without land to develop. Hence, there is fierce competition among these developers to acquire land, making it a key factor in driving land prices higher,” said Firas Al Msaddi, CEO of fäm Properties.

“The only scenario in which we will see land prices falling or stabilizing would be if the off-plan real estate market starts to decline. Any slowdown in off-plan prices would have an immediate impact on land prices in Dubai,” he added.

Dubai’s Q1 property sales over the last five years have now risen to the current level from Dh21 billion (9,800 transactions) in 2020 to Dh24.6 billion (11,600) in 2021, Dh54.6 billion (20,200) in 2022, Dh89 billion (31,100) in 2023 and Dh109.5 billion (37,000) last year.

The top five performing areas of Dubai in terms of volume in Q1 were:

• Jumeirah Village Circle: 3,605 transactions valued at Dh4.559 billion

• Wadi Al Safa: 3,596 transactions valued Dh7.642 billion

• Business Bay: 2,782 transactions valued at Dh7.265 billion

• Dubai South: 2,676 transactions valued Dh8.745 billion

• Dubai Marina: 2,583 transactions valued at Dh9.284 billion

The most expensive individual property sold in Q1 was a luxury villa at Dubai Hills Estate which fetched Dh140 million. The most expensive apartment sold during the quarter went for Dh116 million at The Rings 1 at Jumeirah Second.

With properties worth Dh1-2 million accounting for 31 per cent of sales (14,242), 26 per cent (11,899) were below Dh1 million, 19 per cent (8,567) between Dh2-3 million, 15 per cent (6,837) between Dh3-5 million, and 9 per cent (3,939) more than Dh5 million.

Overall, first sales from developers significantly outnumbered re-sales in the secondary market – 65 per cent over 35 per cent in terms of volume and 61 per cent against 39 per cent in value.

“Once again we’re seeing figures which emphatically underscore the remarkable resilience and strength of Dubai’s real estate market, as the consistent growth of recent years continues,” said Al Msaddi. “This sustained upward trend cements Dubai’s position as a prime real estate investment hub, drawing increasing interest from global investors alongside strong demand from local and regional buyers.”

Philly2dubairealtor,………………..

Re-Blogged via Khaleej Times

Dubai Real Estate Transactions For The Week Of March 31st 2025

Transactions reached a total of 1.8 Billion AED in the week of March 31st 2025 in both Offplan and secondary market sales

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Philly2dubairealtor………..

Are Dubai landlords rethinking short- vs. long rentals?

Dubai’s star-rating system has landlords explore what’s best for them

The kind of rental growth that Dubai’s short-stay rentals used to have has stabilized. This is the other factor landlords need to decide on when they choose between long-term rental and short.

Dubai: Another factor – the star rating system – has started to show up in Dubai landlords wanting to choose between renting out for a year or preferring to go for short-stay letting.

According to market sources, there has been a slowing down in the number of new homes coming for short-term rentals since the start of the year. Dubai’s new digital Rental Index and the star rating system that’s part of it is being cited by some landlords in choosing the 1-year annual rental option.

“Three of the landlords I represent decided to withdraw from short lets and put all their properties for long lease,” said an estate agent. “Together, these three landlords placed around 30-40 units for one-year leases, and got tenants immediately at higher than market averages.

“Buildings with high star ratings are able to command much more in the current market situation. Our clients felt this was too good to miss out on.”

Star rating adds a new factor

Under Dubai’s new Rental Index, a star rating assigned to each building should dictate what landlords can ask for – and on existing leases, sets ranges on how much more they can demand. What this has done is create fresh possibilities for landlords in the longer term rental.

It is also a conversation that more landlords with properties in Dubai are having, and with more when new apartments are delivered in the coming weeks. It’s more or less a given that newer buildings will have a higher rating – giving their landlords the latitude to ask for a higher rents.

At the same time, there are real estate sources say who believe that rental growth in the short-stay market has actually started to plateau out. They point to the sheer number of new units that entered the market during 2024, which also coincided with short-stay rental growth slowing down after two fairly brisk years.

The relative slowing down has extended into this year, which leaves landlords with less wiggle room to ask and get rates they demand.

Vinayak Mahtaini is CEO of bnbme, a business that specializes in shirt-term rentals and management.

“I don’t believe the number (of short-term rental properties) has declined – but the growth it used to have has slowed down,” said Mahtani.

“There are over 40,000 apartments now in the short-term market in Dubai. There is still value in these rentals for property owners. I think we will see a slight correction in the market where companies not adding extra value for the guest or property owner will start to fade away…

“I don’t think a property owner should only be looking at rental income when they think of what to do with the property. Long-term rents have many hidden costs such as refurbishment when the tenant leaves, which also means the apartment will be off the market for weeks.

“Asset preservation is what owners should be looking at along with the peace of mind that they are in possession of their property.”

Dubai short-stay rentals are seeing gains for this week’s Eid holidays, with the popular locations seeing optimum take up rates, say industry sources. This upbeat demand will continue through to peak summer before slowing down.

It would leave landlords with enough time to choose between long or short rentals

Anna Skigin, CEO of Frank Porter, says that landlords choosing short lets have another advantage – “It is also about the flexibility of using the unit – or selling the unit when you want without having to deal with a tenant. There are more considerations to look at when looking at short-term versus long than one annual rent.”

Now, which way will Dubai landlords with new properties being handed over decide to go?

Will Dubai short-stay rentals get a rate boost?

Dubai’s short-stay rental market is hoping that rates would soon start to show a bit of a growth spurt after a relatively slow start so far in 2025. “This year’s Eid booking has been slightly soft with it coinciding with school holidays,” said Vinayak Mahtani of bnbme. “The staycation market is missing seeing rates between $100-$250 a night, which are about 30% down from last year.” This will also be something that landlords will be giving close watch to.

Tabreed JV to do district cooling at Palm Jebel Ali

In one of the biggest wins in the UAE district cooling space, Tabreed has won the agreement to offer these services at the prestigious Palm Jebel Ali development. Construction of the district cooling network on the island is likely to start in Q2-2025, with the first cooling services expected to be delivered by 2027. Over time, the system will address the need for approximately 250,000 RTs of cooling capacity and require an estimated investment of Dh1.5 billion. The project will be overseen by a joint venture, with Tabreed’s stake at 51% and Dubai Holding Investments with 49%.

Philly2dubairealtor,………………..

Re-Blogged via Gulf News