According to industry experts, Dubai's real estate rental transactions are expected to quadruple by 2023, leading to a surge in demand for property management companies.

Over the past two to three years, Dubai has witnessed a similar surge in property purchasing demand, and currently, Dubai, along with other emirates, is catching up with Alkame and Abu Dhabi.

By the end of 2023, it is expected that Dubai will complete as many as 47,000 residential units, a substantial 50% increase compared to the approximately 31,000 residential properties completed in the previous year. Developers are also increasingly focusing on timely project completion, emphasizing "smart," "design," and "sustainable" residences.

Reportedly, the CEO of property management and leasing services company Colife, Ilnara Muzafyarova, stated, "With the keys, owners are now eager to lease, resulting in a significant increase in leasing transactions this month." Muzafyarova revealed, "The number of apartments leased with our assistance has quadrupled compared to a year ago (January 2023)."

Insiders revealed that the exponential growth in leasing transactions is not surprising. With more residential units being delivered, investors are turning their attention to the rental market, seeking rental income. Additionally, the number of people immigrating to Dubai through long-term residency plans such as the Golden and Digital Nomad visas is increasing, considered a factor driving the demand for rental properties in Dubai.

However, as investors shift their focus from property purchase to the rental market, the cost of rents in Dubai is also increasing. By the end of 2023, it is projected that rents in the city will rise by 30%, with a first-half increase of approximately 23%. This has led some investors to reconsider their investment strategies to address the rising risk of rental costs.

Industry experts state that the increase in leasing transactions reflects the surge in demand for real estate investment in Dubai, while the rising rental yield and soaring property appreciation are reducing investors' average return on investment period, currently estimated at 8 years. With tenants continuing to reside, Dubai's rental yield is expected to reach 7-8% annually, and the city's real estate prices are projected to average a 14-15% increase from mid-2022 to mid-2023.

While the rising cost of rents may impact some investors, interest in Dubai's real estate market persists among investors from around the world. In addition to generating passive rental income, the value of Dubai's real estate market remains high. Especially for investors seeking long-term investment, Dubai's real estate market continues to be an attractive choice.