Why Rentability Matters for Property Investors in 2025
For international Buy-to-let investors considering prime markets such as London and Dubai, one pivotal question persists:
“Will this property rent quickly and consistently?”
In 2025, rentability transcends being a mere buzzword; it serves as a strategic metric that directly influences three critical investment parameters:
1. Return on Investment (ROI)Properties that secure tenants swiftly and command higher monthly rents enhance annual yields and expedite capital recovery.
2. Vacancy RateIn competitive rental markets, robust tenant demand reduces the duration a property remains unoccupied. Shorter vacancy periods ensure uninterrupted cash flow and diminish holding costs, particularly vital for overseas investors relying on rental income to offset mortgage payments or service charges.
3. Ease of Resale
High rentability often correlates with desirable locations, superior property quality, and strong tenant demand, the same factors that attract buyers during resale. Essentially, a highly rentable property today becomes a more liquid asset tomorrow.
Recent reports from JLL and Knight Frank underscore that international buyers are prioritising urban properties with strong rental fundamentals, not merely long-term capital appreciation. This trend is especially pronounced in London Zones 2–5 and Dubai neighbourhoods like Dubai Marina, Jumeirah Village Circle (JVC), and Business Bay, where rental demand remains resilient despite global economic fluctuations.
In London, rental growth is projected to reach 17.1% between 2025 and 2029, driven by a persistent supply-demand imbalance and legislative changes impacting landlords. Similarly, Dubai’s prime residential market is experiencing positive growth, with limited luxury supply and a rapidly growing population contributing to increased rental values.
Understanding these dynamics is crucial for investors aiming to select properties that not only appear promising on paper but also deliver tangible performance in reality.
But identifying these high-performing assets requires more than browsing public listings.
To truly understand what rents and why, you need access to the full market, not just what platforms choose to show.
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Key Rental Drivers in 2025
As global cities like London and Dubai continue to attract investors, understanding what drives rental demand is key to maximising returns and minimising vacancy. In 2025, tenants are more discerning than ever, prioritising flexibility, sustainability, and technology.
Here are the four leading rental drivers investors should know, with real-world insights from both markets.
1. Location & Connectivity Remain Paramount
Access to public transport, business hubs, and lifestyle infrastructure remains a top priority for renters, but “prime location” today often means accessibility and affordability, not just centrality.
London Insight:
Outer Zones like Walthamstow, Acton, and Tooting (Zones 3–4) have seen a rise in rental activity. According to Zoopla’s June 2025 Rental Market Report, the average rent for new lets in the UK is £1,287 as of April 2025, indicating a 2.8% annual increase.
Dubai Insight:
Neighbourhoods like Jumeirah Village Circle (JVC) and Dubai Hills Estate benefit from access to Al Khail Road and Sheikh Zayed Road, while offering more affordable rents. Bayut’s 2024 Annual Report notes that JVC saw rental increases of up to 26% across most unit types.
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2. Smart Homes & Energy Efficiency: The New Standard
Today’s renters value modern technology and sustainable living. In both London and Dubai, demand is rising for homes that reduce energy bills and offer digital convenience.
London Insight:
As part of the UK’s upcoming energy efficiency reforms, all rental properties are expected to meet at least an EPC rating of C by 2030. Properties in areas like Canary Wharf and Wembley Park that already meet this standard, with smart thermostats, triple glazing, and solar-assisted systems, are fetching higher rents and experiencing faster lettings.
Dubai Insight:
The Dubai Green Building Regulations require new developments to include energy-efficient systems. High-rise buildings in Business Bay and Downtown Dubai now commonly offer smart AC control, LED lighting, and water-saving fixtures. These features attract eco-conscious expats and short-term tenants alike.
3. Pet-Friendly Policies: A Competitive Advantage
As pet ownership grows, tenants are actively seeking properties that welcome their furry companions. In dense urban markets where pet policies are often restrictive, flexibility can dramatically increase interest.
London Insight: Projects like Battersea Power Station and Elephant Park are pioneering pet-friendly rentals, offering dog runs, green spaces, and pet-friendly flooring. According to HomeLet, pet-friendly listings receive up to 30% more enquiries in London.
Dubai Insight: In buildings across JLT, JVC, and The Greens, listings that accept pets see increased tenant interest. With growing pet-related amenities, such properties are staying occupied longer and commanding rental premiums.
4. Matching Property Type to Local Tenant Demand
Understanding what unit types are most in demand is essential for minimising vacancy and targeting the right renters, especially in high-density cities.
London Insight: In Croydon and Woolwich, 2-bedroom flats are the top choice among young couples and families priced out of Central London. These areas benefit from regeneration projects and fast links via Thameslink and DLR, with yields averaging 5.3%.
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Dubai Insight: 1-bedroom apartments remain the most in-demand rental units in Dubai Marina and Jumeirah Lakes Towers (JLT), particularly those with furnished options, free chiller, and co-working spaces.
Investor Takeaway
While EPC ratings and transport links drive London’s rental desirability, tech-enabled amenities and pet-friendly flexibility give Dubai properties a competitive edge. Matching these evolving preferences allows investors to reduce vacancy, increase yields, and ensure long-term rental performance.
Market-Specific Tips: Where Rental Demand Is Highest in 2025
Understanding local rental dynamics is essential for any investor aiming to minimise vacancy and maximise long-term returns. While both London and Dubai present strong rental performance, the tenant profiles, pricing dynamics, and unit preferences differ significantly between the two.
Here’s a data-verified breakdown of the highest-demand rental zones in both cities, reflecting verified insights from sources including JLL, Rightmove, Zoopla, Bayut, and Allsopp & Allsopp.
London: Where Tenants Are Moving in 2025
In the post-pandemic rental landscape, demand has shifted from Zone 1 to more affordable, better-connected outer zones. With the Elizabeth Line and Overground expansion, areas once overlooked now show strong rental yields and faster tenant turnover.
Why it matters:
- Transport access via Elizabeth Line, Thameslink, and DLR
- Regeneration investment in Croydon, Stratford, and Acton
- Affordability vs. Zone 1 pushes more renters outward
Dubai: Expat-Focused High-Occupancy Zones
Dubai’s rental demand continues to be driven by expats and remote workers prioritising flexibility, connectivity, and lifestyle. Units with tech-enabled amenities and short-term lease options are outperforming traditional long lets.
Why it matters:
- High-quality lifestyle amenities (gym, pool, co-working)
- Chiller-free options and furnished units attract relocators
- Demand aligns with metro access and employment hubs
Real Example: A High-Performing Unit in JVC
Among these high-occupancy zones, Jumeirah Village Circle (JVC) stands out for its balance of affordability, community appeal, and strong rental performance, especially for investors targeting long-term returns.
A clear example is this 1-bedroom apartment in Al Dana Tower, located in District 12 of JVC:
Al Dana Tower, JVC – Dubai
- AED 65,000/year | Estimated ROI: 7%
- Fully furnished with modern interiors
- Chiller-free (no cooling charges)
- Approx. 950 sqft – spacious layout
- High floor with community views
- Pet-friendly building
- 24/7 security and covered parking
- Gym and swimming pool access
View This Investment Property on Entralon
Why it matters for investors:
This unit ticks all the boxes, driving demand in Dubai’s rental market: furnished, chiller-free, pet-friendly, and well located. It directly aligns with tenant preferences in JVC and delivers a reliable 7% yield, making it a smart addition to any buy-to-let portfolio.
Final Thought
Invest Where Tenants Want to Live!
In 2025, the rental market in cities like London and Dubai is evolving fast, but one principle remains unchanged:
Properties that meet tenant expectations rent faster, stay occupied longer, and generate stronger returns.
From transport-connected neighbourhoods in Zone 3 London, to tech-savvy, pet-friendly towers in JVC Dubai, smart investors are no longer guessing what renters want; they’re acting on clear market signals.
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FAQ
1. Dubai: Which Areas Offer the Highest Rental Yields in 2025?
Dubai Silicon Oasis leads the pack with average gross yields exceeding 9.3%, followed closely by Dubai Investments Park (DIP) and Jumeirah Village Circle (JVC). These areas offer modern amenities, competitive purchase prices, and consistent tenant demand, making them ideal for buy-to-let investors focused on income performance.
2. London: Where Are the Highest Rental Yields in 2025?
East London continues to shine in 2025. East Ham (E6) and Stratford (E15) benefit from major regeneration and strong transport connectivity. In particular, E6 offers a 6% gross yield, based on an average property price of £413,767 and a typical monthly rent of £2,055. Other strong performers include SE28 (Thamesmead) and E9 (Hackney), both popular among young professionals and supported by long-term development plans.
3. Where Can I Find More Affordable Rental Properties in London?
Zones 3 and 4, including Walthamstow, Tooting, and Acton, have grown in popularity due to improved infrastructure and more accessible pricing. These neighbourhoods provide good connectivity via the Elizabeth Line and Overground, while offering better value compared to Central London.
4. Which Areas Are Most Popular with Expats in Dubai?
Neighbourhoods such as Jumeirah Village Circle (JVC), Dubai Marina, and Dubai Hills Estate are highly sought-after by expats in 2025. They offer a balance of lifestyle, amenities, and community, including pet-friendly buildings, furnished units, and access to schools and co-working spaces.
5. Can I Obtain Residency in Dubai Through Renting?
No, rental alone does not qualify you for residency. However, purchasing a property worth AED 1 million or more can make you eligible for a renewable 2-year UAE residency visa, provided the property is completed and held under your name.
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