Rents are finally dropping in Dubai — these areas just got more affordable

Dubai: If you’ve been bracing for another rent hike, here’s some good news — not every Dubai neighbourhood is getting more expensive. In fact, a few have quietly become more affordable.

According to Bayut’s Dubai Property Market Report for Q3 2025, “rental costs for affordable and mid-tier apartments have declined by up to 5% in several popular areas.” The shift marks a welcome break for tenants and a sign that Dubai’s rental market is finally finding balance.

If you’re renting in Bur Dubai, Arjan, or Dubai Silicon Oasis, you may already have noticed it — rents there have dipped by as much as five per cent this quarter. These are among the few areas in the city where more new supply and stable demand are giving tenants room to negotiate.

Bayut notes that renters are becoming more deliberate with their choices. Many are prioritising space, amenities, and overall value, not just location. As new buildings continue to hand over units in the coming months, the increased supply is helping level out prices across the mid-market segment.

Bayut’s CEO Haider Ali Khan said the changes reflect growing market maturity: “Dubai’s real estate market continues to demonstrate stability, driven by consistent demand and new handovers that have diversified housing options.”

He added that tenants are becoming more strategic in their choices. “We’ve seen renters prioritising space, amenities, and long-term value over short-term trends,” Khan noted.

For renters who’ve been considering an upgrade — say, from a studio to a one-bedroom — this could be the right time to move.

The villa market, however, isn’t following the same pattern. While affordable options in DAMAC Hills 2 and Dubai South have stayed steady, some mid-tier communities have seen sharp jumps.

Take Arabian Ranches 3, for example, “rents for four-bedroom villas increased by as much as 47% due to strong family demand and new handovers in Caya 2,” Bayut reported. Family demand remains strong in mature villa areas, and limited inventory in central districts keeps prices firm.

So, while apartment renters are starting to feel relief, villa tenants may need to wait longer for prices to settle.

If you’re looking for a place where your dirhams stretch a little more, several areas stand out right now.

Bayut’s data shows these same communities also deliver strong rental returns. “Affordable districts such as International City and Discovery Gardens recorded some of the highest gross rental yields in Dubai, averaging around 8%,” the report stated.

For renters, that means better options and more flexibility. For investors, it’s proof the city’s affordable housing segment is still delivering solid returns.

As rents stabilise, Dubai’s property sales are holding firm. Demand remains strong in Jumeirah Village Circle (JVC), Business Bay, and Dubai Marina, where buyers are drawn by consistent rental demand and long-term appreciation.

According to Bayut, “the overall sales market continued to perform steadily in Q3 2025, with most popular communities seeing moderate increases in average property prices.” More residents are now considering buying instead of renting, particularly in areas where home prices have plateaued.

This steady movement signals a maturing market — one driven by end users as much as investors.

Bayut summed up the trend as a sign of healthy progress: “The UAE property sector has entered a phase of sustained stability, where consistent demand and continuous development are shaping a more mature, sustainable market.”

With more supply on the way and the economy expanding, 2026 could bring more choice and predictability for tenants.

For now, though, renters finally have room to breathe — and for the first time in years, some can even look forward to paying a little less.