The Dubai developer expects continued increase in rents and property prices this year amid supply shortage
Deyaar Development to Launch Five New Projects Worth Dh8 Billion Amid Strong Market Demand
Dubai-listed Deyaar Development is set to introduce five new real estate projects with a total value of Dh8 billion ($2.17 billion) this year, aiming for Dh4 billion in sales as demand for UAE property remains high.
The developer, which is majority-owned by Dubai Islamic Bank, launched a similar number of projects last year, achieving total sales of Dh2.5 billion.
“We will be launching at least five projects this year, with three set for the first half and two to three more in the second half,” said Saeed Al Qatami, CEO of Deyaar, in an interview.
Four of the upcoming projects will be situated in Dubai, while one will be located outside the city, though the specific emirate has not been disclosed. Two of these developments will be joint ventures, funded through the company’s equity, with additional financing from banks if required.
Expanding Across the UAE
Deyaar made its Abu Dhabi debut last year with the Dh800 million Rivage project on Al Reem Island, which witnessed strong demand and sold out quickly. The project was developed in partnership with Arady Properties.
The newly planned developments will feature between 2,000 and 2,500 units, with prices varying by location. Properties in waterfront areas are expected to range between Dh2 million and Dh3 million, while those near Sheikh Mohammed bin Zayed Road and Dubai Production City will have an average price of Dh900,000.
“Demand remains strong, with an increasing number of high-net-worth individuals and young professionals relocating to the UAE,” Mr. Al Qatami noted.
He emphasized that Dubai’s appeal lies in its employment opportunities, business-friendly environment, and exceptional lifestyle, making it a prime destination for both job seekers and entrepreneurs.
Dubai’s Real Estate Boom
Dubai’s real estate sector continues to thrive, driven by government incentives such as residency permits for retirees and remote workers, the expansion of the 10-year golden visa program, and the UAE’s broader economic diversification efforts.
In 2023, Dubai recorded property transactions worth Dh761 billion, reflecting a 20% increase from the previous year. The total number of transactions surged by 36%, reaching 226,000, as per data from the Dubai Media Office.
The luxury property market has also seen a surge, with 435 home sales valued at over $10 million last year, compared to 434 in 2023. The total value of these transactions stood at $7 billion, according to Knight Frank.
Deyaar’s customer base includes buyers from India, Europe, and China, along with Emirati investors. The company aims to grow its revenue to Dh15 billion by 2028 or 2029, significantly increasing from its Dh1.5 billion revenue recorded last year.
Property Prices and Rents Expected to Rise
Deyaar anticipates continued growth in rental and property prices, citing a supply-demand imbalance.
“Current occupancy rates are at 90-91%, with rents rising significantly over the last two to three years,” Mr. Al Qatami explained.
This trend is expected to continue until additional supply enters the market or population growth stabilizes. Rental prices are projected to balance out by 2026 or 2027, as new projects are completed, potentially leading to price adjustments in select areas.
Dubai experienced record-breaking property sales and rental price increases last year, with citywide rents rising by 16% and property values by 18%, according to a report by Cushman and Wakefield Core.
“The demand shows no signs of slowing, and 2025 will see further price increases despite new inventory entering the market,” the report stated.
It further highlighted that by 2026 and 2027, major project completions and regulatory changes will bring more stability, strengthening Dubai’s position as a global real estate investment hub.
Only 30,200 residential units were completed last year, which was 11% below projections and 30% lower than 2023.
Smart Rental Index to Improve Market Transparency
Several Dubai government initiatives have recently been introduced to support market stability, including a smart rental index and a new freehold property conversion scheme for private property owners on Sheikh Zayed Road and Al Jaddaf.
“The rental index plays a crucial role in ensuring transparency between tenants and landlords,” Mr. Al Qatami said.
The Dubai Land Department recently launched a new rental index, which rates residential buildings from one to five stars based on over 60 factors, including location, security, sustainability, and amenities.
Deyaar also owns a plot on Sheikh Zayed Road, which it plans to convert to freehold status in the second half of the year, following the Dubai government’s recent freehold initiative.
