Dubai rents during the first half…a more disciplined market in pricing

The DXB Interact real estate platform confirmed that the rental market in Dubai witnessed, during the first half of 2026, a clear transition from a phase of rapid rise to a more balanced and mature phase.

She explained that the actual “Ejari” contract data showed continued activity at strong levels, with a selective calm in some categories of medium-sized apartments and villas, stressing that this change does not reflect a decline or weakness in demand, but rather indicates a more disciplined market in pricing, and a more sustainable one for tenants, owners, and investors.

In detail, data from the “DXB Interact” real estate platform showed the movement of real estate rentals in Dubai during the second quarter of the current year 2026. The Jumeirah Beach Residences (JBR) area topped the list of the highest rented areas for apartments in the “studio” and one-bedroom categories, within 12 main areas in the emirate, while “Business Bay” was the highest rented area in the two-bedroom category.

The data prepared by Al-Manasa for Emirates Today revealed that the JBR region topped the 12 areas monitored during the second quarter in terms of the average rental price for a residential unit in the “studio” category at 70 thousand dirhams annually, while “International City 1” was the lowest for this category at 32 thousand dirhams. “JBR” also topped the regions in the category of one-bedroom residential units at 102.5 thousand dirhams annually, while “International City 1” was the lowest priced at 44 thousand dirhams annually.

The data also showed that Business Bay leads the regions in terms of the average annual rental price for two-bedroom residential units at 130 thousand dirhams annually.

In general, the data showed that the average annual rental prices for the “studio” category in the 12 regions during the second quarter of this year amounted to 50.88 thousand dirhams, for the “one-bedroom” category about 70.08 thousand dirhams, and for the “two-bedroom” category about 98.41 thousand dirhams.

The list of areas monitored included: Jumeirah Beach Residences JBR, Business Bay, Jumeirah Lakes Towers JLT, Barsha Heights – Tecom, Jumeirah Village Circle (JVC), Al Jaddaf, Arjan, Al Barsha, Discovery Gardens, Dubai Silicon Oasis, International City 1 (International City), and International City 3.

Selective sedation

For his part, the founder of the “DXB Interact” real estate platform, Fateh Al-Masadi, said, “During the first half of 2026, the rental market in Dubai witnessed a clear transition from the stage of rapid rise to a more balanced and mature stage,” noting that the actual “Ejari” contract data showed the continuation of activity at strong levels with a selective calm in some categories of medium-sized apartments and villas.

He added to Emirates Today: “This change does not reflect a decline or weakness in demand, but rather indicates a market that is more disciplined in pricing and more sustainable for tenants, owners and investors,” expecting relative stability to continue during the third quarter, with greater cohesion for large villas and areas with limited supply.

Al-Masadi continued: “The performance of the rental market during the first half confirms that the market has entered a more mature stage, as pricing has become more closely linked to the actual supply and quality of the residential product, rather than the wide rises that included most regions and categories during previous years.”

He stressed that this transformation has positive effects in the medium term, as it contributes to maintaining Dubai’s attractiveness to residents and companies, and reduces pressure on tenants, while continuing to provide an active environment for owners and investors.

He stated that the delivery of 17,238 housing units so far since the beginning of 2026 has helped the market absorb demand in a more sustainable manner, explaining that “the entry of new supply into the market has contributed to achieving a better balance between owners and tenants, while maintaining high levels of rental contract activity.”

He pointed out that the most accurate reading of the market’s performance does not consist in a comprehensive decline in rents, but rather in a healthy rebalancing, as some categories witnessed a calming in prices, and some areas stabilized, while large villas maintained their strong levels.

Al-Masadi stressed that “the rental market in Dubai is likely to continue its stable path during the third quarter, in light of the continued strength of demand, in addition to the continued selective calm in some apartment categories and areas that recorded rapid increases during the last period.”

He explained that the most likely scenario is continued stability with greater selectivity in price movement, rather than sharp and comprehensive declines, noting that “the ability of landlords to raise rents will be less compared to the levels of 2024 and 2025.”

He added that the market will continue to be supported by a number of fundamental factors, including population growth, the continued relocation of companies and individuals to Dubai, and any gradual improvement in regional trade movement and supply chains, as well as the tendency of many families to renew their current contracts or sign long-term contracts to avoid moving costs.

He pointed out that the rental market showed during the first half of 2026 a clear ability to maintain activity, with the volume of contracts approaching the levels of the year 2025 and exceeding the levels of 2024 and 2023 for the same period, reaching 146 thousand rental contracts in the emirate, which reflects the continued strength of residential demand.

He stated that the second quarter witnessed the beginning of a calming in the median values ​​of new contracts within a number of categories of medium-sized apartments and villas, considering that these developments represent a healthy indicator of the maturity of the market and its transition to a more accurate pricing stage that depends on the quality of the property, its location, and the size of the available supply.

He explained that price movements between the two quarters showed a clear calm in new contracts, especially in apartments and medium-sized villas, indicating that the data is based on actual “Ejari” contracts and the intermediate values ​​implemented in the market, which makes them more accurate in reflecting the reality of the market compared to advertising prices.

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