Rent and real estate costs in Dubai are “expected to continue increasing over the coming years.”

With a growing population, rising demand, and skyrocketing property prices in Dubai…

Property prices in Dubai are expected to keep climbing over the next two to three years, according to The National. Rent costs are also predicted to rise as demand for properties to rent or buy outpaces the supply in the emirate.

A study by ValuStrat management consultancy reveals that the number of new homes completed in 2024 was the lowest in 6 years, with only 27,000 new homes finished last year.

Dubai’s population saw its biggest jump in 6 years last year, growing by over 169,000 people in 2024, bringing the total to 3.825 million by the end of the year.

Experts told The National that the rise in property prices is driven by supply and demand. One expert pointed out that while the growth rate will continue to rise in 2025, it will be at a slower pace compared to 2023 and 2024.

Another recent change that could impact property buyers is that DLD fees now have to be paid upfront, instead of being added to mortgages like before.

According to The National, the ValuStrat study also revealed that the average cost of buying an apartment surged by 23.6% in 2024, while villas saw a 31.6% increase. Rent prices also went up last year, with apartments rising by 13% and villas increasing by 5.8%.

With many apartment towers and properties set to be completed in the next two to three years, it’s expected that rents and property prices will level off by 2028.

Here’s hoping…!