Dubai rental contracts reach Dh126 billion in 2025 on strong demand

Dubai: Dubai’s rental sector recorded solid growth through 2025. According to the data released by the Dubai Land Department, registered tenancy contracts rose 6% in volume and 17% in value compared with the previous year, reaching 1.38 million contracts worth Dh126.4 billion. The increase points to strong residential mobility, rising population inflows and steady leasing activity across both residential and commercial segments.

New tenancy agreements exceeded 513,000 contracts during the year, marking a 10% rise and highlighting continued demand from new residents entering the market. Renewals also edged higher, climbing 3% to more than 514,000 contracts, which indicates stable occupancy levels and growing tenant retention.

The performance reflects a maturing rental ecosystem supported by regulatory clarity and a wide range of housing options. The sector continues to play a central role in attracting talent and supporting long-term economic growth.

Development momentum continues

Construction activity remained strong throughout the year, signalling confidence among developers and investors. The number of completed projects rose 7% to 124 developments, while the total value of completed projects increased 23% to Dh27.5 billion.

Projects under construction expanded sharply, rising 25% to 937 developments, indicating a strong pipeline of future supply. The continued pace of delivery reflects confidence in long-term demand driven by population growth, job creation and investor inflows.

Property transactions also recorded strong performance. The number of units sold climbed 25% to 147,500 properties, while total transaction value jumped 30% to Dh280 billion. Higher-value homes led much of this growth, with villa sales values rising even as volumes declined, pointing to a shift toward premium real estate assets.

Brokerage and licensing activity surges

A sharp rise in real estate licensing mirrored the expansion of market activity. The number of registered real estate offices reached 4,122 during the year, more than doubling from the previous period and bringing the total number of active offices in Dubai to over 10,000.

A total of 14,364 real estate licences were issued across various activities. Brokerage services dominated, including more than 6,000 licences for sales brokerage and over 3,500 for leasing brokerage. Additional licences covered transaction services, development activities, property supervision and consultancy.

Authorities said the growth reflects rising demand for professional services across the real estate value chain and highlights the strength of Dubai’s regulatory framework, which aims to enhance transparency and support investor confidence.

The sustained growth of the rental sector aligns closely with the objectives of Dubai’s long-term economic strategies, including initiatives aimed at improving quality of life and strengthening the city’s global competitiveness.

The steady rise in both new and renewed contracts suggests a balanced market environment supported by strong regulation, diversified housing supply and consistent population growth.