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.

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

Areas such as Jumeirah Village Circle (JVC), Arjan, and Dubai Hills Estate are seeing slower rent adjustments, while prime zones like Palm Jumeirah and Al Barari continue to attract strong demand.

“Dubai’s residential market continues to attract a diverse pool of buyers, from end-users seeking long-term value to investors drawn by the emirate’s stable regulatory framework and global appeal,” said Andrew Cummings, Head of Residential Agency, Middle East at Savills.

He added that Dubai’s growing base of long-term residents shows how the city is evolving from a transient market into a “family-friendly environment” — something that also helps stabilise rents.

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

According to Savills, around 8,500 new apartments and villas were handed over in the third quarter of 2025. By the end of the year, about 30,000 new homes will have entered the market — roughly matching 2024’s total.

Springfield Properties’ October 2025 report noted that 48,568 rental contracts worth Dh4.37 billion were signed that month, underscoring steady leasing activity despite slower price growth.

“Crossing Dh46 billion in transaction value this month reinforces Dubai’s position as one of the world’s most resilient and desirable real estate markets,” said Farooq Syed, CEO of Springfield Properties. “The momentum is now being driven by a healthy mix of end-user demand and long-term investor confidence.”

For tenants, that growing supply means more choice — and often more negotiating power when renewing leases or moving.

Some long-term renters are now considering buying their own homes. fäm Properties’ October market report shows that apartments made up most of Dubai’s sales, with 16,238 transactions worth Dh31 billion, up 3.4% year-on-year.

“The market overall is undeniably strong, and on a global scale, Dubai remains one of the best real estate markets to invest in,” said Firas Al Msaddi, CEO of fäm Properties. “The only consistent way to win is by making well-informed, data-backed decisions.”

That growing interest in ownership — helped by competitive mortgage rates and more mid-income developments — may ease pressure on rentals over the coming months.

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.

Savills noted that villa demand continues to be driven by population growth and high-net-worth migration — trends that keep prices steady in family-focused neighbourhoods.

If you’re planning to move into a townhouse, early 2026 may bring better availability as new handovers are scheduled.

Savills expects rent growth to slow further through 2026 as more homes are completed, giving renters greater flexibility.

Springfield Properties projects “a more balanced relationship between landlords and tenants” in the coming year as new stock and stable demand keep the market even.

As Andrew Cummings of Savills noted, Dubai’s maturing residential sector is helping create “a more stable, family-oriented market” — a shift renters are beginning to feel firsthand.

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.