Dubai’s Rental Market Stabilises as Tenant Choices Expand

(MENAFN- Betterhomes) Dubai’s residential leasing market is showing signs of stabilisation, with rental prices levelling out and tenants gaining more options. February recorded 36,223 leasing transactions, marking a 10% drop from January. Renewals dominated the market, making up 59% of transactions, while new contracts accounted for 41%.

The strongest rental growth was seen in apartments at Al Khail Heights, where rents increased by 6.6% to an average of AED 66.9K. Townhouses in Palm Jumeirah followed closely, with a 6.5% rise to AED 127.3K.

Betterhomes data indicates a shift in rental dynamics, with average apartment rents declining by 4% month-over-month (MoM) to AED 133,492. Townhouse rents fell by 13% to AED 185,000.

“We’re seeing increased rental inventory online, reinforcing the trend of rent stabilisation in some areas in 2025. Tenants in these sectors now have more options and are increasingly price-sensitive, while landlords who price competitively secure tenants more quickly. It’s important to keep in mind that rents have surged in recent years, so minor fluctuations are part of a healthy market cycle. The bigger picture is that Dubai rentals continue to offer exceptional ROI. At Betterhomes, our February leasing transactions rose 43% compared to February 2024 and 12% from January 2025. By staying responsive to market dynamics, landlords can maximise long-term value and minimise void periods,” shared Rupert Simmonds, Director of Leasing at Betterhomes.

With increased inventory, competitive pricing, and a strong rental yield, Dubai’s residential leasing sector is poised for continued growth. At Betterhomes, we continue to stay ahead of the curve, offering tailored strategies to make sure every lease transaction delivers optimal results, helping landlords make smart decisions and ensuring tenants find their ideal homes.

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