In Dubai’s real estate market, buyers are increasingly splitting their budgets to purchase two properties instead of one, for personal use and rental income. This strategy is reshaping the rental market with areas like Dubai Hills, Meydan and Dubai Creek expected to see increased demand in 2025.
Source: Bayut & Emaar Properties & CNN
This shift is driven by a growing expat population particularly in sectors like finance, tech and tourism. It also reflects concerns over potential market “overheating” and a desire to diversify investments. Buyers are opting for affordable housing in emerging neighborhoods where prices remain accessible but rental yields are strong, ranging from 5.4% to 10.8%.
In response to evolving buyer preferences, there is also a growing demand for furnished apartments as both buyers and renters prioritize comfort and convenience. Developers are adapting quickly to this trend with more ready-to-move-in furnished units being offered, especially in high-demand areas like Marina, JLT and Business Bay.
Source: Visit Dubai
The demand for affordable housing and long-term rentals is expected to continue rising supported by Dubai's economic diversification efforts and the city’s expanding population.