April Update: Post-Ramadan Trends & What to Expect

Dubai Real Estate Market Update: Post-Ramadan Trends and April Projections

As Ramadan concludes, Dubai's short-let market is showing promising signs of recovery, with key trends and forecasts shaping the real estate landscape for April 2025.

Occupancy Trends

March saw impressive occupancy rates, with AirDXB short-let properties achieving 90% occupancy, 31% higher than the market average of 59% according to AirDNA.

Short-Let Listings

Active entire place short-let listings slightly decreased from 25,600 in February to 25,400 in March. This reduction in stock has positively impacted average daily rates (ADR), benefiting property owners.
This pattern is observed every year:

·      August to January: Stock levels rise.

·      January to July: Stock levels drop MoM.

Although the trend is consistent each year, the volume of change increases year-on-year as seen in the below graph from AirDNA.

Mid-Term and High-Value Bookings

Demand for mid-term rentals and premium properties continues to rise, particularly in sought-after locations such as Palm Jumeirah. This trend highlights the growing preference for high-value bookings among travelers.

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April Forecast

April is expected to bring a robust recovery, driven by the Easter holidays. Families from Western countries are flocking to Dubai during their two-week school break, which runs from April 7 to April 18. This influx of visitors presents an excellent opportunity for property owners to maximise rental revenue during the high season.

Real Estate Market News

Dubai's real estate sector is evolving rapidly:

• New Developments: The city is witnessing one new project launch per day according to Khaleej Times, increasing housing supply.
• Tokenization Initiative: The Dubai Land Department has introduced real estate tokenization, making property investment more accessible. Learn more from Dubai Land Department.

Long-Term Rental Market Insights

The long-term rental market is stabilising as new inventory provides tenants with more options. Rent increases slowed in March 2025, forcing landlords to price competitively. Property Monitor data revealed a 0.57% drop in average prices in January 2025, marking a cooling period after years of unprecedented growth.

Dubai's real estate market remains dynamic, with short-let properties offering lucrative opportunities for investors. As April unfolds, property owners can capitalise on high-season demand and adapt to evolving market trends. Whether you're investing in short-term rentals or exploring long-term options, staying informed is key to success in Dubai's ever-changing real estate landscape.