Dubai's residential property market will remain popular with landlords as rents are expected to continue to rise in the medium term amidst a growing population.

More and more tenants are opting to renew their leases as rents continue to rise in the post epidemic period.

Richard Waind, managing director of Betterhomes Group, said the supply of existing homes remains tight, putting pressure on both sales and rental prices.

"Given the rise in rental prices over the last 18 months, we are seeing more and more tenants choosing to renew their leases. This has resulted in a 29 percent drop in rental transactions," the real estate brokerage said, citing its data.

Abdulla Bin Sulayem, chief executive officer of Seven Tides, said the luxury real estate market in Dubai has been hyped up, but demand for value accommodation has remained strong.

"This demand will continue unabated as Dubai's economy continues to expand, spurring expatriate population growth," he said.

While rents continue to rise in most areas, analysts say some areas are stabilizing, albeit at much higher levels than a year ago.

With Dubai's population continuing to grow and the number of tenants increasing, occupancy at the company's managed properties has reached a record high of 97 percent.

"Renters are unlikely to feel the relief of higher prices until there is a significant increase in the supply of properties," the company said.

"Looking ahead to the rest of the year and beyond, Dubai will continue to be a major beneficiary of the increase in global migration of high-net-worth individuals and capital, and with strong GDP figures, demographics and high returns on investment set to continue, the long-term forecast for Dubai's real estate market is looking very healthy," said Waind.

Single checks continue to dominate, accounting for 29% of Betterhomes transactions, followed by two checks (28%), indicating that tenants are willing to pay higher rents for Grade A properties.