With an increasing number of new residential properties in Dubai and easing absorption rates, the rental market is shifting in favor of tenants, as some properties remain on the market longer.
Real estate analysts report that landlords are becoming more accommodating, offering multiple cheque payment options, a month of free rent, waived commission fees, and utility bills included, as many Dubai residents are opting for homeownership and rental renewals are slowing.
“We’ve noticed a temporary gap between landlord expectations and shifting market demand, leading to properties staying on the market longer. However, this shift is creating a tenant-friendly environment,” stated analysts at CBRE, a global real estate consultancy.
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“Landlords are taking a proactive stance, bringing back attractive incentives such as flexible cheque payments, free rent periods, waived fees, and inclusive utilities. As more units enter the market, we expect moderate rental adjustments, opening up new opportunities for residents. While these adjustments need to be compelling to drive significant market movement, the evolving scene offers more options and value for tenants,” they noted in their second quarter 2025 report on the UAE’s real estate market.
According to recent Reidin data, Dubai’s residential market was highly active in August 2025, with 38 new projects adding nearly 8,000 units to the city’s supply. Additionally, 35 upcoming projects were announced.
Property Monitor data indicated that Dubai’s project pipeline maintained momentum in July, with over 50 launches introducing more than 13,800 units, valued at a combined Dh38 billion. This brings the year-to-date total to nearly 93,000 units and Dh270 billion in potential sales for the first seven months.
Softening Absorption
“With approximately 93,000 units launched this year, buyer selectivity is increasing, and signs of softening absorption are becoming evident. Developers need to focus on viability over speed, emphasizing product differentiation, delivery timelines, and realistic pricing,” said Property Monitor analysts in their latest Dubai market report.
Following a prolonged rise in property prices and rentals over four years, the market is pausing, with growth rates slowing.
CBRE reports a one percent monthly growth in apartment rents and two percent for villas.
The market had previously experienced double-digit growth, reaching record highs in prior quarters and years.
CBRE analysts noted that landlords are strategically enhancing properties, including furnishing and upgrading units, to distinguish their offerings. “These premium properties attract higher prices and appeal to tenants seeking convenience and modern living, contributing to the rising average rents,” they said.
As the market matures and rebalances, CBRE observed that rents are increasing not only due to new residents moving to the city but also due to internal relocations as residents look for new housing options.
