A 10-20% decline in Dubai rents is a healthy correction for the property market after a four-year surge, says Rizwan Sajan, Founder & Chairman of Danube Properties.
Following double-digit rent hikes since Covid-19, Sajan predicts a rental market adjustment in 2025, which will benefit long-term market stability.
Why a Rent Correction is Necessary
In an exclusive interview with Khaleej Times, Sajan stated:
A 10-20% rental correction is needed because prices have risen significantly. This adjustment will keep Dubai attractive to global investors, especially amid global uncertainty. However, rents and property prices must remain balanced to sustain growth.
Recent reports confirm early signs of rent declines in some areas due to:
✔ Increased competition among landlords
✔ Impact of Dubai’s Smart Rental Index on older properties
✔ Rising supply of new units
New Supply Impacting Dubai’s Rental Market
According to Property Monitor, Dubai saw 7,848 units delivered in Q1 2025, with 71,251+ expected by year-end. Over 80,000 units are slated for 2026, increasing supply pressure.
Betterhomes’ Q1 2025 report highlights:
“The surge in new supply will play a key role in shaping rental rates and property prices, alongside demand trends.”
Sajan notes:
“Next year’s project deliveries will likely trigger a rental correction, but top developers offering quality amenities will remain resilient. Dubai continues to attract investors from the US, Canada, and beyond due to its stability.”
Danube Properties: Leading Dubai’s Real Estate Growth
As a Top 10 Dubai developer, Danube has:
🏢 Delivered 18 projects (3 ahead of schedule in 2024)
🏗 16 ongoing projects
🔥 Launched Sparklz by Danube – a 358-unit tower in Al Furjan
📈 25.5M+ sq. ft. under construction
Contractor Shortage: A Growing Challenge
Sajan warns of a shortage of quality contractors due to:
🔹 Rising number of foreign & local developers
🔹 Limited contractor availability
🔸 Contractors preferring reputable developers
He urges more contractors from Oman, Bahrain, Saudi Arabia, and India to enter Dubai’s booming market, stating:
“Setting up a contracting business in Dubai is easier than ever—approvals, visas, and hiring are streamlined.”
Final Takeaway
Dubai’s real estate market remains resilient, with a moderate rent drop expected in 2025. For investors, high-quality developments by trusted builders like Danube Properties offer the best long-term value.
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