Residential rents in parts of Dubai have fallen by as much as 14 per cent over the past year, giving tenants greater room to negotiate as more homes become available, according to property consultancy Betterhomes.
Speaking during a webinar on Dubai’s property market and the company’s Future Living Report 2026, Betterhomes representatives said rental prices had eased by around 3 per cent overall, although performance varied significantly between communities.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Downtown Dubai recorded an annual rental decline of around 14 per cent, while rents in Dubai Marina fell 12 per cent. In contrast, Jumeirah Islands saw rents rise 29 per cent, reflecting continued demand for more exclusive residential communities.
The shift is also changing tenant behaviour, with more residents exploring alternative homes rather than automatically renewing their existing leases.
According to Betterhomes, new leases increased 19 per cent in October, while renewals declined 25 per cent, suggesting tenants are increasingly taking advantage of additional housing options.
Property sales slow
Dubai’s residential sales market has also recorded lower transaction volumes compared with last year.
Betterhomes said off-plan property transactions reached just under 6,400 in October, down around 50 per cent year-on-year, although the segment continued to account for approximately 62 per cent of sales.
The slowdown followed a sharp reduction in new project launches, with developers adopting a more cautious approach amid market uncertainty.
In the secondary market, transactions rose from around 3,500 in September to more than 3,800 in October, although overall volumes remained around 40 per cent below last year’s levels.
Average resale prices stood at approximately Dh1,650 per square foot, down around 2.4 per cent year-on-year.
Betterhomes representatives said sellers were generally achieving prices around 8 to 9 per cent below advertised asking prices, highlighting the importance of realistic pricing.
Residents plan to stay longer
Despite softer market activity, the company’s Future Living Report 2026 showed continued confidence among Dubai residents.
The survey, conducted during June and July among nearly 2,000 residents from 63 nationalities, found that 91 per cent intended to remain in Dubai for at least five more years, while 69 per cent planned to stay for 10 years or longer.
Homeownership among respondents increased to 32 per cent, compared with 28 per cent in 2025 and 23 per cent in 2024.
Meanwhile, 55 per cent of surveyed tenants said they planned to buy a property within the next one to three years.
The findings also showed that 70 per cent of respondents said their confidence in Dubai as a place to live and invest had either remained unchanged or increased despite regional developments.
Buyers prioritise quality and green spaces
The report also found that residents were becoming more selective about their property purchases.
Among respondents, 76 per cent considered a developer’s reputation and track record important, while 74 per cent prioritised construction quality and 58 per cent highlighted timely delivery.
Green spaces and walkable neighbourhoods were another major priority, with 77 per cent seeking more parks and pedestrian-friendly areas in new developments.
Betterhomes representatives said Dubai’s market was moving towards a more mature phase, with buyers paying greater attention to long-term value, construction standards and community facilities.
They also pointed to a possible recovery in transaction volumes over the coming months, although the timing and extent of any improvement remain uncertain
Source: Khaleej Times