Rising Rents for Young People
- Giulia
- Dec 12, 2025
- 3 min read
Across the UAE, housing costs have become one of the biggest concerns for young residents, especially as rents continue to rise in both Dubai and Abu Dhabi. According to The National (2025), Dubai rents have increased by almost 25 percent in just one year. For students, new graduates and young families, this kind of jump can make renting feel less like an exciting step into independence and more like a stressful financial challenge.
One of the main reasons behind this rise is the growing demand for housing. The UAE keeps attracting professionals from all over the world, as well as international companies that bring new workers with them. More people moving in naturally means more people competing for the same number of homes. Gulf News recently reported that Abu Dhabi property transactions have reached around Dh94 billion this year, which shows how active and crowded the market has become. With so many new residents arriving, demand is climbing faster than the supply of new apartments.
Another part of the problem is that new housing takes time to build. Even though both cities are continuing to expand, construction cannot keep up with the number of people looking for affordable homes. Many of the new developments also focus on luxury apartments, which appeal to wealthy residents or investors but leave fewer mid-range options available. This makes it harder for young people to find a place that fits both their lifestyle and their budget.
It is also important to understand that the pressure does not come only from rising prices. The way rent is paid in the UAE adds to the challenge. Traditionally, tenants paid rent using one to four cheques per year, which meant paying a large amount of money upfront. For young professionals or graduates who have only just started earning a salary, this can be overwhelming. As reported by Gulf News, many tenants say the biggest struggle is not the rent itself but the size of the upfront payment. Thankfully, things are slowly changing. More landlords now accept monthly payments, and Khaleej Times notes that paying rent in 12 instalments is becoming more common, especially with the help of banks and digital platforms.
For young residents, all of this has real impacts on everyday life. A larger share of income now goes toward housing, which leaves less money for saving, social life or long-term goals. Some people move further away from the city, where rent is cheaper, while others share apartments to reduce costs. Even students who want to move out after finishing school sometimes delay the decision because they simply cannot afford to rent on their own.
There are still some positives to look forward to. The National predicts that rent growth may slow down in 2026 when more housing becomes available. The shift toward monthly payments is also a step in the right direction and makes renting more manageable for younger tenants. However, long-term affordability will depend on how much mid-range housing becomes available compared to luxury units.
Overall, rising rents in the UAE come from a mix of high demand, limited supply and a payment system that has been slow to modernise. Understanding these trends matters, especially for young people who are planning their next steps in life. By staying aware of how the housing market is changing, young residents can make smarter decisions about where to live and how to budget for the future.
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