Buy-to-let landlords in Dubai should prepare for a surge in demand in 2025 experts say. Analysts expect short-term rentals to grow by 18%, and long-term leases by 13%.
Much of the demand will come from professionals relocating to the UAE for work. According to data from the Legatum Institute, Dubai is the global leader when it comes to attracting skilled workers, while Deel says the country is the preferred choice for professionals seeking overseas employment visas.
2025 could see even more skilled workers relocating to Dubai, with 92% of businesses saying they plan to recruit more permanent employees, temporary employees, contractors, or freelancers over the next 12 months. With sectors like banking, property and construction and manufacturing all set to add to their headcount, demand for good-quality rental accommodation could exceed the 18% increase projected so far.
There’s also likely to be significant demand for very short-term rentals, as tourism continues to evolve. In both 2022 and 2023 Dubai was named TripAdvisor’s number one destination for tourism with visitors attracted by the cosmopolitan lifestyle, beaches, weather, culture and shopping.
Growing tourist demand opens up further avenues for buy-to-let investors, as travellers increasingly seek out unique experiences and the opportunity to immerse themselves in their surroundings. In 2024, holiday home occupation levels grew from 72% to 80%, while average daily rates also increased by 12% year-on-year. Revenue is also expected to rise over the next four years, with an expected CAGR of 10%.
