Real Estate CEO Expects Strong Performance in Rental Market

Dubai developers are shifting focus, recognizing the potential of rental properties alongside sales. Deyaar, for instance, plans to expand its rental portfolio, aiming to increase its rental income to Dh3 billion. This strategic move reflects the growing rental market in Dubai, offering developers a steady income stream. The Dubai Residential REIT model, with its substantial rental properties across popular locations, serves as a benchmark for this shift.

Deyaar's strategy includes retaining residential units for rental income, a departure from solely focusing on sales. The company is also expanding its footprint with new projects in Abu Dhabi (Rivage on Reem Island) and Umm Al Quwain (Aya Beachfront Residences), marking its first ventures outside of Dubai. Sales recognition from these projects is expected to begin later this year and early next.

Deyaar's financial performance in Q1-25, with a net profit of Dh119.82 million, demonstrates the positive impact of new launches and rental income from its existing commercial assets. The company's Umm Al Quwain project is set to commence construction soon, benefiting from the site's minimal pre-construction requirements.