Dubai’s Rental Market Booms: A 10% Increase

Record Activity in the Rental Market

Dubai's real estate market further strengthened in 2025, as evidenced by a significant increase in the number of rental agreements. Newly registered rental contracts exceeded 513,000, marking a 10% rise compared to the previous year. This figure is noteworthy on its own but is particularly significant when considered within the context of the entire market.

The total volume of registered rental contracts grew by 6% year-on-year, while their overall value increased by 17%. The number of contracts reached 1.38 million, with a total value of 126.4 billion dirham. This growth indicates that not only were more contracts signed, but rental prices and property values also rose.

What Drives this Growth?

Multiple interconnected factors underpin this expansion. One key element is the persistently strong demand. Dubai continues to attract foreign workers, entrepreneurs, and investors, who typically enter the market by initially renting. The city's economic stability, business-friendly environment, and infrastructure continually generate new residents.

Another significant factor is the diversification of housing supply. In recent years, not only luxury projects have emerged but also developments tailored to various price levels and lifestyles. From studio apartments to family villas, from downtown flats to suburban community housing, the range is extensive, allowing people across different income levels to find suitable solutions.

The transparency of the regulatory environment also plays an important role. The legal framework is clear, contracts are digitally registered, and the relationship between owners and tenants is regulated. This creates predictability, which is particularly crucial in a fast-growing market.

Renting as a Gateway to Ownership

The stability of the rental sector is not just a short-term market phenomenon. Strategic goals include establishing a sustainable balance between renting and property ownership. For many, renting is a natural entry point into the real estate market: gaining experience in a particular neighborhood, getting to know the environment, and later deciding to purchase.

This model supports the healthy functioning of the market. It does not force immediate purchasing but offers the opportunity for gradual integration and financial planning. Thus, increased rental activity could also pave the way for long-term growth in the ownership market.

Accelerating Developments

Development activity also increased notably in 2025. The number of completed projects rose by 7%, with a total of 124 projects concluded, whose combined value increased by 23%, reaching 27.5 billion dirham. This suggests that developers are not slowing down but continue to trust in the long-term strength of the market.

Even more telling is that the number of projects under construction grew by 25%, reaching 937. This predicts a significant future supply, which may help maintain market balance. Developers are clearly betting on structural demand, not just short-term waves.

Strengthening Sales

The surge in the rental market is happening alongside an increase in sales transactions. The number of sold property units rose by 25%, reaching 147,500. The total transaction value increased by 30%, reaching 280 billion dirham.

An interesting trend can be observed in the villa market: while the number of units sold decreased, the total value increased by 12%. This suggests a shift in demand towards higher-value, premium properties. Buyers are not necessarily purchasing more properties, but rather, higher-value ones.

Expanding Professional Background

Growth extends not only to properties but also to market participants. More than 4,100 new real estate offices were registered, bringing the number of active offices to over 10,000. Additionally, over 14,000 real estate licenses were issued in various areas, from brokerage to leasing and development.

This expansion indicates that the real estate sector is strengthening not only in volume but also institutionally. Competition is intensifying, services are becoming more professional, which ultimately benefits both tenants and buyers.

Balance and Sustainability

The numbers show that Dubai's real estate market is not overheated but is on a structured growth trajectory. The increase in rental agreements, acceleration in developments, strengthening sales, and stability of the regulatory background together paint a balanced picture.

Thus, the 10% increase in new rental contracts should be seen within a broader context. It's the result of a complex ecosystem involving demand, supply, regulation, and investor confidence.

If current trends persist, the rental market will continue to play a key role in Dubai's economic and social development, providing a stable foundation for both residents and investors.