Dubai Rental Market Set for Balanced Growth as New Supply Expands Housing Options
Thursday, 26 February 2026
Dubai’s residential rental market is moving toward a more balanced phase as new housing supply increases across the emirate, supporting stable growth and offering tenants greater choice through 2026.
Key Highlights:
- Latest market insights from Allsopp & Allsopp indicate strong tenant activity alongside a gradual stabilisation in rental growth.
- Rental transaction volumes rose 48%, while total rental value increased 5%, reflecting sustained demand across the market.
- Data from Dubai Land Department shows a more balanced leasing environment with tenants exploring a wider range of options.
- A steady pipeline of newly completed residential units is expanding housing availability across multiple communities.
- Apartments are expected to see greater supply entering the leasing market as many off-plan developments reach completion.
- Villa and townhouse rentals continue to attract strong interest due to limited supply and demand from families seeking larger homes.
- Tenant engagement remains high, with notable growth in property listings, registrations, and viewing activity at the start of the year.
- According to CBRE, Dubai’s residential rental market is transitioning toward a more sustainable growth cycle as supply and demand align.
- Market outlook from Knight Frank suggests continued demand supported by population growth, economic expansion, and international talent moving to Dubai.
- The evolving market dynamics are expected to create a stable and healthy rental environment benefiting both tenants and property owners through 2026.
