Why things have never looked better for Dubai landlords
With a fast-growing population and business friendly rules, there’s a ton of reasons to enter the emirate’s rentals market.
Over the past few years, the surge in Dubai’s property rentals market has been mind-blowing.
This has been driven in large part by the emirate’s strategic location, impressive infrastructure, and thriving economy – all of which have made it a desirable destination for expats and businesses alike.
Another key factor behind this growth is the UAE's ambitious Tourism Strategy 2031, which has helped attract millions of visitors to Dubai each year. In 2023 alone, a staggering 17 million tourists visited the city – many of whom eventually transitioned to becoming expat residents, thus driving up demand for rental homes.
And with the recent announcement of the gigantic new Al Maktoum International airport project – which will be the largest in the world and cost an eye watering Dh128 billion ($34.8 billion) – the economy is set for another major boost, as are the real estate and construction industries.
Dubai in the global eye
Social media has played an important role in normalising the idea of moving to Dubai.
In today’s ‘always online’ era, seeing friends and former colleagues living it up in the emirate (tax free) makes the move seem not just feasible… but highly desirable. People witness the quality of life Dubai offers, and then often compare it unfavourably to their home country.
To many, Dubai is seen as a land of opportunity – a place where ordinary people can achieve extraordinary things.
So, as more and more newcomers arrive in Dubai in pursuit of their dreams, the demand for rental properties escalates, inevitably driving up prices and creating a highly appealing landscape for landlords.
The time is now for landlords
While Dubai is glamorous and exciting, why should landlords consider entering (or re-entering) the real estate market here as opposed to other major cities around the globe?
Firstly, the demand for rental properties in Dubai remains exceptionally high, outpacing the supply generated by new developments. Despite the vast scale of ongoing construction projects, the emirate’s property market struggles to keep pace with the city's rapidly growing population.
Plus, the price per square foot in Dubai is considerably lower than in many other global cities such as London, Paris, and New York. This presents an attractive proposition for investors seeking value and potential returns.
A major extra bonus is that Dubai offers ease of transaction in property dealings, making it one of the simplest and most liquid real estate markets globally. Coupled with new visa regulations that make it easier than ever to obtain residency, the lure for property investors is powerful.
New regulations helping the market
Recent updates in regulations, particularly the implications of the RERA calculator update and the new legal requirements for landlords seeking to hike rents, have sparked significant interest across the market.
The RERA calculator update allows landlords to legally increase rents by up to 20% upon renewal. This adjustment could potentially lead to more tenants transitioning to become homeowners, thereby stimulating the residential sales market. However, the main result of this update is a healthier, fairer landscape, which benefits everyone.
Moreover, the requirement for a court order to apply for a Rent Evaluation Certificate streamlines the process and promotes transparency by directing all parties to the RERA Index Calculator. This move aims to limit illegal price hikes and ensure a level playing field for both landlords and tenants.
The Importance of professional support
Considering these regulatory changes, the role of trusted, experienced property consultants becomes vital to prospective landlords. Working with a reputable agent helps them navigate the complexities of the rental process while avoiding potential pitfalls.
Agents are also crucial for mediating agreements and protecting both parties during the rental process. They check and approve contracts to ensure they comply with RERA regulations, complete due diligence by verifying title deeds, Power of Attorney, and ownership documents.
They also facilitate contract signing and payment of rent deposits, ensuring both parties are protected. Additionally, they advise on Dubai specific processes such as Ejari, Dubai Electricity and Water Authority (DEWA), and move-in permits, which is particularly helpful for those unfamiliar with the market.
Beyond the admin, a great agent provides expert advice and local area knowledge. They often have many off-market listings, so looking online alone could mean missing out on the best properties.
Interested in becoming a landlord? Speak to our team.
