Dubai Rental Contracts Reach Dh126 Billion in 2025 on Strong Demand
Dubai’s rental sector delivered another strong year in 2025, with total registered tenancy contracts reaching 1.38 million agreements worth Dh126.4 billion, according to data from the Dubai Land Department (DLD).
Contract volumes increased 6% year-on-year, while total rental value jumped 17%, reflecting rising population inflows, strong housing demand, and steady leasing activity across both residential and commercial segments.
New vs Renewed Contracts: What the Data Shows
- New tenancy contracts: 513,000+ (up 10%)
- Renewed contracts: 514,000+ (up 3%)
- Total registered contracts: 1.38 million
- Total rental value: Dh126.4 billion
The 10% increase in new contracts highlights continued demand from new residents entering Dubai, while the steady rise in renewals indicates stable occupancy levels and growing tenant retention.
This suggests a balanced rental ecosystem rather than short-term speculative churn.
Renting Is Still the Entry Point to Ownership
Dubai’s rental sector continues to act as a gateway to homeownership. Many tenants begin by renting in well-connected districts such as Meydan City or Jumeirah Garden City, then transition into off-plan investments once financially ready.
Popular off-plan projects attracting first-time buyers include:
- Binghatti Skyrise
- Rosewell by NSHAMA
- Equiterra by Emaar
- Pearl House 4 by Imtiaz
- Chelsea Residences
- Golf Verge
- Sera at Rashid Yachts & Marina
- Peace Lagoons
This rental-to-ownership shift aligns with Dubai’s long-term strategy to balance renting and buying while maintaining affordability and investor confidence.
Development Momentum Remains Strong
Construction activity continued at pace in 2025:
- Completed projects rose 7% to 124 developments
- Total value of completed projects increased 23% to Dh27.5 billion
- Projects under construction surged 25% to 937
The expanding pipeline signals sustained developer confidence, supported by long-term demand drivers such as population growth, business formation, and foreign investor inflows.
Property Sales Also Surge
Dubai’s ownership market mirrored rental strength:
- Units sold increased 25% to 147,500 properties
- Total transaction value rose 30% to Dh280 billion
Villa sales values climbed even as volumes softened, pointing to increasing demand for higher-value and premium properties.
Brokerage and Licensing Activity Doubles
The broader real estate ecosystem expanded significantly:
- 4,122 new real estate offices registered (more than double year-on-year)
- Total active offices surpassed 10,000
- 14,364 real estate licences issued in 2025
Licensing activity included:
- 6,000+ sales brokerage licences
- 3,500+ leasing brokerage licences
- Additional permits across transaction services, development, supervision and consultancy
This surge reflects rising demand for professional services across the real estate value chain and continued regulatory strengthening aimed at improving transparency and investor confidence.
Strategic Implications
The Dh126 billion rental figure highlights the central role of leasing in Dubai’s economic ecosystem. The rental sector functions as:
- A gateway for new residents and talent
- A stabiliser for population mobility
- A feeder into long-term homeownership
- A key contributor to overall transaction growth
The steady rise in both new and renewed contracts indicates a healthy, demand-driven market supported by diversified housing supply and regulatory clarity.
Conclusion
Dubai’s rental market in 2025 demonstrated structural strength rather than cyclical spikes. With Dh126.4 billion in rental contracts, accelerating development, rising sales volumes, and expanding brokerage activity, the sector remains a foundational pillar of the emirate’s long-term economic and real estate strategy.
