Dubai rents stop spiking, but are tenants getting more negotiating room?

Dubai: After two years of sharp rent increases, Dubai tenants are finally getting some breathing space. Apartments in several popular areas are no longer rising as fast — and in some cases, are slightly cheaper than earlier this year.

The change isn’t the same everywhere, but renters now have more room to plan, compare, and even push for better deals.

1. Rents cool in key areas

According to Savills’ Q3 2025 Dubai Residential Report, rent growth has “started to level off” in mid-range communities where new homes have been handed over.

Jumeirah Village Circle (JVC), Arjan, and Dubai Hills Estate are among the areas seeing a slowdown, while prime areas such as Palm Jumeirah and Al Barari still see steady demand.

“Tenants are becoming more price-sensitive and flexible on location as affordability pressures mount,” said Swapnil Pillai, Associate Director of Research at Savills Middle East.

That matches what was recently reported — rents in Bur Dubai, Arjan, and Dubai Silicon Oasis are down by up to 5%.

2. More homes hit the market

Savills estimates about 8,500 new apartments and villas were handed over in the third quarter of 2025. By year-end, about 30,000 new homes will have entered the market — roughly the same as last year.

Springfield Properties found 48,568 rental contracts worth Dh4.37 billion were signed in October but noted that “growth has started to flatten in many apartment zones.”

“The sharpest rent escalation phase is now behind us,” said Sean McCauley, CEO of Springfield Properties. “We’re entering a period where both landlords and tenants are reassessing fair value.”

3. More tenants look to buy

According to fäm Properties, apartments made up most of Dubai’s sales in October — 16,238 transactions worth Dh31 billion, up 3.4% from a year ago.

“Tenants who research, compare, and negotiate are already securing better deals — sometimes 10% below 2024 levels,” said Firas Al Msaddi, CEO of fäm Properties.

That shift — as some renters buy their own homes — is easing pressure on apartment demand, helping rents stay more stable.

4. Villas still hold their value

While apartment rents are flattening, villa rents remain steady. The Dubai Office and Residential Report Q3 2025 found that family homes in areas like Arabian Ranches 3, Tilal Al Ghaf, and Damac Hills 2 “held firm” because of limited new supply and strong family demand.

If you’re planning to move into a townhouse, waiting until early 2026 could make sense. More new homes are due for handover then, which may give families more choice and flexibility.

How to use this moment if you rent

• Compare before you renew. Check the RERA rental calculator online to see what others pay in your area. If your rent is above the average, you can ask for a reduction when your lease renews.

• Negotiate with proof. Bring listings or official rent data from DXB Interact or Savills to your landlord when discussing your renewal.

• Look at timing. According to Springfield, summer is still the quietest season for rentals. Renewing or moving between May and August can often get you a better deal.

• Consider newer communities. More new homes are being delivered in Meydan, Dubai South, and Wadi Al Safa 5, which may offer better prices or newer facilities.

What’s ahead for renters in Dubai

Savills expects “rent growth to slow further through 2026 as more homes are completed.” Springfield predicts “more balanced negotiations” between landlords and tenants over the next year.

As Pillai from Savills put it: “Dubai is moving from a high-growth phase to a more sustainable one — and renters are the first to notice.”

Key takeaway?

For the first time in years, Dubai tenants can compare, question, and negotiate with confidence. Rents aren’t dropping everywhere, but in many mid-range areas, the pace has clearly eased.

If your lease is up soon, do your homework, gather evidence, and start talking early. The numbers now give you room to move — and room to save.