Major concern on its way in 2025; Setback for Indian expatriates in Dubai

ABU DHABI: Dubai is home to lakhs of Indian expatriates. Tens of thousands of Indian expatriates, including a good share of malayalees, make a living in this elite city. Every year, new people are arriving in the city in search of a lucrative career. And now, reports coming are not favourable to the existing expatriates and the new ones dreaming of a career in the Gulf metropolis.

Reports indicate that there will be a big increase in the rental rates in Dubai. A 10 per cent increase in rental rates is indicated next year. The increase in prices is due to the influx of new residents to the emirate. It is estimated that luxury areas will be more affected by the price hike due to demand from the affluent class. Prices are also expected to rise in suburbs as more people tend to move here minding the high demand in major cities.

Dubai's population growth also contributes to the rising rents. Dubai's population is 3.814 million, according to figures from the Dubai Statistics Center this month. The current metro area population of Dubai in 2024 is 3,051,000, a 1.43% increase from 2023. Rent for a penthouse apartment this week alone is Dh4.4 million. A villa was rented out for Dh15.5 million. Real estate experts point out that in 2025, the rental rate will increase more for apartments than for villas.

According to real estate experts, the increase in rental rates will mostly affect the luxury areas of Dubai such as Jumeirah Islands, Al Barari, Dubai Marina, Palm Jumeirah and Downtown Dubai.