Dubai Developers Embrace Rentals: Deyaar Aims for Dh3 Billion Rental Portfolio

Dubai: In a shift from the traditional “build-to-sell” model, Dubai developers are increasingly eyeing the rental market as a long-term growth strategy. Deyaar Development’s CEO, Saeed Mohammed Al Qatami, says the company is now planning to expand its rental portfolio beyond commercial assets.

“Our current rental portfolio, primarily commercial, stands at Dh2.5 billion to Dh2.6 billion,” Al Qatami said. “Now, we’re looking to grow a residential rental segment and increase our total rental assets to Dh3 billion. Retaining some projects for leasing provides consistent revenue and doesn’t always require selling every unit.”

Inspired by Dubai Residential REIT

The success of the Dubai Residential REIT, recently listed on the DFM, sets a model for others. With over 30,000 rental units across 20+ key locations including Palm Jumeirah, the REIT delivers stable income in a market witnessing sustained rental growth.

Al Qatami acknowledged this trend, noting that Deyaar has typically focused on selling residential units while keeping retail space. But now, “In a rental-friendly market like Dubai, maintaining a balanced rental portfolio makes solid business sense.”

Expanding Beyond Dubai

After resolving legacy losses through financial restructuring, Deyaar is now expanding into Abu Dhabi and Umm Al Quwain with projects like Rivage on Reem Island and Aya Beachfront Residences—its first ventures outside Dubai.

Sales revenue from these projects will be recognized from late 2025. The UAQ development is expected to begin construction soon, with minimal pre-construction expenses due to favorable site conditions.

Strong Start to 2025

Deyaar reported a robust Q1 2025 net profit of Dh119.82 million, up from Dh77.54 million a year ago. The gains were driven by new launches in Dubai and steady returns from office and retail rentals.

A new launch in Dubai is also on the horizon, expected to further strengthen the company’s performance.