Dubai Rental Prices Fall in Former Hotspots

Dubai rental prices have fallen in areas that once led the market, as new leases overtook renewals in July and August.

Dubai rental prices are falling in several areas that once led the market, and new leases have overtaken renewals, according to Gulf News.

Dubai rental prices: new leases overtake renewals

In registered data, new leases outnumbered renewals by 633 contracts in July and 2,139 in August. That is the first such shift since records began in January 2023. Data also reviewed by Osmium Properties. Before that, renewals had led for 36 straight months.

Supply is also rising, which weighs on Dubai rental prices. Property Finder said September daily apartment listings ran 55.1% above a year earlier. Renter enquiries rose 15.4%. However, each listing drew 23% fewer enquiries. Property Finder said landlords have had to reprice as more homes compete for each tenant.

Where Dubai rental prices have dropped most

Dubai rental prices fell in several areas, based on Property Finder asking rents, between the third quarters of 2025 and 2026. Downtown Dubai dropped 21.74%, from Dh230,000 to Dh180,000. Dubai Marina fell 16.13% to Dh130,000. Meydan fell 13.33%, Business Bay 12.5% and Jumeirah Village Circle 10%. Palm Jumeirah dipped 4.76% to Dh240,000.

Agency data showed new-lease rents down about 15% on Palm Jumeirah and 11% in Downtown for January to September, compared with the same period in 2025. Villa rents also fell in some communities. For example, Arabian Ranches 3 dropped 18.92%.

Areas where rents are still rising

Not every area fell. Agency data showed apartment rents up 10.3% in Al Yelayiss 2 and 9.1% in Wadi Al Safa 2. Property Finder reported Al Furjan rents up 15.15%. Meanwhile, renewal rents rose between 4% and 14%, depending on unit type. New-lease rents for the same units were 15.3% below January levels.

Market observers expect stability over the next three to six months. Areas with heavy handovers could face more pressure.

These figures come from listing platforms and agencies, and asking rents differ from registered contracts for new leases and renewals. Check official records on our Dubai transactions dashboard and the Dubai Land Department, and read more in our real estate news section. We will keep following Dubai rental prices closely.

Source: Based on a Gulf News report using listing-platform and agency data.