Some developers in Dubai are planning to implement projects intended for leasing instead of selling them.
Deyaar intends to invest up to 3 billion dollars in the construction of rental housing.
Over the past three years, the Dubai real estate market has shown growth in both sales and rental rates, prompting developers to focus on rental housing projects. In the context of Dubai's active construction market, developers are considering building new residential complexes for rent, anticipating stabilization of property prices after two years of record growth.
Saeed Mohammed Al-Qatami, CEO of Deyaar, noted a slowdown in the growth of prices for under-construction real estate, emphasizing the importance of having properties for both sale and rent to sustain growth. The company also plans to create a rental housing portfolio worth up to 1 billion dirhams (270 million US dollars), supplementing its existing commercial real estate.
Other developers are also following this direction, taking measures against a potential market slowdown. The decision to lease helps them determine plans after project completion.
Recent years have witnessed growth in Dubai's real estate market, with rent increases of 15-35% in the most sought-after locations. Rent growth is also observed in new city areas. This could lead to competition between developers and individual landlords.
Deyaar has successfully implemented projects such as the 70-story Regalia skyscraper and the Midtown public development, and plans to continue expanding its portfolio. Al-Qatami expressed confidence in the further growth of Dubai's real estate market.