Dubai’s Real Estate Outlook with Ahmed Al Suwaidi: Growth, Stability, and Future Trends

Ahmed Al Suwaidi, General Manager of Residential Communities at Dubai Holding Asset Management, speaks with Emirates247 about the current state of Dubai’s real estate market, the evolving rental landscape, and future projections for 2025 and beyond. He highlights the resilience of Dubai Residential, its strategic expansion, and how market dynamics are shaping the city’s residential sector.

Q: The Dubai real estate market has been performing exceptionally well since the beginning of 2022. What are your projections for 2025?

Dubai’s real estate landscape is evolving at an unprecedented pace, creating vast opportunities for growth and investment. At Dubai Residential, we are at the forefront of this transformation—strengthened by the strategic integration of Nakheel and Meydan into Dubai Holding. This milestone has expanded Dubai Residential’s leasing portfolio to over 35,000 units across 20+ prime communities, serving a community of 140,000+ residents. As one of Dubai’s largest residential leasing portfolios, we are committed to supporting Dubai’s evolution and enhancing the quality of life for its residents.

The real estate market’s growth reflects Dubai’s visionary leadership, robust economic fundamentals, and commitment to creating a globally attractive urban environment.

Projections for 2025 remain highly optimistic, with continued expansion expected across residential, commercial, and mixed-use developments. Dubai’s population grew at an annualized rate of 3.8% between 2022 and 2024, a trend anticipated to persist as the Emirate aims to reach a population of 5.8 million by 2040. Demand for mid- and high-affordability residential segments is expected to rise, driven by economic growth, rising employment levels, and an influx of wealthy individuals. Additionally, expatriates are choosing to stay in the UAE for longer periods, aided by initiatives like the Golden Visa and the cost advantages of lease renewals, fostering greater market stability and sustained demand.

Key drivers supporting Dubai’s appeal include the D33 Economic Agenda, long-term residency programs, favorable tax policies, and sustainability initiatives like the Dubai Urban Master Plan 2040. Investments in green spaces, urban connectivity, and resource efficiency will drive long-term value. Dubai Residential is well positioned to leverage this growth, offering integrated living spaces with state-of-the-art amenities that align with Dubai’s vision for world-class, eco-friendly living.

Q: Do you anticipate that the increase in supply will impact prices in the future?

Over the past few years, demand for residential properties has outstripped new supply, contributing to a tightening market. This trend continued into 2024, with the first nine months registering 125,604 transactions—surpassing the entire 2023 total and positioning 2024 as another record year for Dubai’s property market.

Dubai’s strong economic fundamentals, strategic urban development, and high quality of life support its position as a top destination for both residents and investors. By 2030, approximately 212,000 new residential units are expected, fostering a healthy balance between supply and demand.

At Dubai Residential, we believe our portfolio is strategically positioned to withstand potential oversupply scenarios. Our integrated, resident-focused communities remain highly desirable due to their quality, modern amenities, and proactive management. With a strong focus on tenant satisfaction, controlled rent increments, and diverse offerings across various housing segments, we maintain a stable tenant base and high occupancy levels.

Q: How do you evaluate the performance of the rental sector in Dubai? What is your current rental yield, and what are your future expectations?

Dubai’s rental sector continues to perform strongly, driven by robust demand and the city’s global appeal. Between 2021 and 2024, rental rates saw significant growth, with apartment rents rising by 19.1% annually on a per sq. ft. basis, and villa rents increasing by 12.4%.

Dubai Residential has been a key player in this thriving market, consistently delivering competitive rental yields. Our portfolio maintains occupancy rates exceeding market averages in high-demand communities, ensuring stable rental income and long-term growth potential.

Q: The RERA index has undergone notable changes recently. How do these updates impact Dubai Residential and the broader rental market?

The recent updates to the RERA index mark a significant step toward greater market transparency. By incorporating real-time transactions and aligning rental ranges to individual buildings through Ejari contracts, the refined index provides a more precise benchmark for rent adjustments.

These refinements support the Government’s broader efforts to ensure market stability—an initiative we fully endorse. For Dubai Residential, these updates will facilitate fair and consistent rental adjustments, reinforcing tenant satisfaction and driving above-market occupancy and retention rates. On a broader scale, these changes enhance market confidence and empower tenants with greater transparency.

Q: Can you provide insights into Dubai Residential’s portfolio value, existing projects, and their distribution across the Emirate?

This year marks a major milestone with the rebranding of Dubai Residential, emphasizing our commitment to innovation, community enhancement, and exceptional living experiences. Our refreshed identity reflects our role in shaping Dubai’s residential landscape while adapting to market trends.

Dubai Residential’s portfolio includes over 35,000 units across more than 20 thriving communities, representing a diverse and high-performing asset base. Our properties are strategically positioned to maximize market potential and align with Dubai’s urban development vision.

We categorize our offerings into four distinct segments:

• Premium Living: Iconic properties in prime locations like Bluewaters, City Walk, and Nad Al Sheba, featuring high-end living standards and world-class amenities.

• Community Living: Family-focused communities, such as Shorooq and Ghoroob in Mirdif, providing gated environments with retail, leisure, and fitness facilities.

• Affordable Living: Quality housing solutions tailored for value-conscious residents, addressing a crucial segment of the population.

• Corporate Housing: Purpose-built accommodations for corporate and industrial staff, offering convenience and proximity to key business hubs.

Each of these segments reflects our strategic approach to catering to Dubai’s growing and diverse population while reinforcing our market leadership.

Q: What is your current occupancy rate? Do you have waiting lists in high-demand communities?

Our portfolio occupancy rate exceeds 95%, well above the market average of 88%, underscoring the strong demand for Dubai Residential properties. This success stems from our focus on delivering high-quality residential experiences, proactive leasing strategies, and a commitment to tenant satisfaction.

In high-demand communities like Mirdif and The Gardens, occupancy levels reach nearly 100%, often resulting in waiting lists—a testament to the desirability and competitiveness of our offerings. With retention rates of 90%, tenants continue to choose Dubai Residential for long-term living, further strengthening our market position.

Looking ahead, we are actively expanding our portfolio with new developments in high-demand locations, ensuring we meet market needs while enhancing the living experience for our residents.