Dubai’s Real Estate Rental Value Rises 17% in 2025 as Market Matures
Dubai’s rental market delivered another strong performance in 2025, with total rental value rising 17% year-on-year to reach Dh126.4 billion (approximately $34 billion), according to data from the Dubai Land Department (DLD).
Registered tenancy contracts increased 6% in volume, reaching 1.38 million agreements. The numbers reflect sustained residential and commercial demand, supported by population growth, business expansion, and a more structured regulatory environment.
New and Renewed Contracts Signal Stability
- New tenancy contracts exceeded 513,000 (up 10%)
- Renewed contracts surpassed 514,000 (up 3%)
- Total tenancy contracts reached 1.38 million
- Total rental value hit Dh126.4 billion
The 10% growth in new contracts highlights Dubai’s continued appeal as a place to live and work, while the steady rise in renewals points to higher tenant satisfaction and stable occupancy levels.
This balanced performance supports the broader objectives of the Dubai Economic Agenda D33 and the Dubai Real Estate Sector Strategy 2033, both of which aim to maintain a sustainable property market that balances ownership and renting.
What Rising Supply Means for Rents
While demand remains strong, future supply is set to increase significantly. Around 180,000 new residential units are expected to be delivered between 2026 and 2028. This larger pipeline could moderate rental growth over the next few years, particularly in mid-market communities.
Areas such as Jumeirah Village Circle, Dubailand, Dubai Silicon Oasis, and Expo Living are expected to see steady new supply entering the market.
Rental Market Remains a Gateway to Ownership
Dubai’s rental ecosystem continues to function as a pathway to homeownership. Many long-term residents begin by renting in communities like Meydan City or Jumeirah Garden City before transitioning into off-plan investments.
Projects attracting buyers moving from renting to ownership include:
- Binghatti Skyrise
- Rosewell by NSHAMA
- Equiterra by Emaar
- Peace Lagoons
- Samana Resorts
- Six Senses Residences
This gradual shift reflects increasing confidence in Dubai’s long-term economic outlook.
Development and Sales Also Surge
Rental growth was accompanied by strong development activity:
- 124 projects completed (up 7%)
- Dh27.5 billion in completed project value (up 23%)
- 937 projects under construction (up 25%)
Property sales also accelerated:
- 147,500 units sold (up 25%)
- Dh280 billion in total transaction value (up 30%)
Villa values increased 12% despite lower volumes, indicating demand is concentrating in higher-value segments, including premium developments in Palm Jumeirah and Jumeirah.
Brokerage Sector Expands Rapidly
Regulatory activity also reached record levels:
- 4,122 new real estate offices registered (up 102%)
- Total active offices reached 10,182
- 14,364 real estate licenses issued in 2025
This growth reflects increasing demand for brokerage, leasing, development, and consultancy services within a well-regulated and transparent ecosystem.
Final Perspective
A 17% rise in rental value is not just a headline it signals operational maturity and sustained demand. While upcoming supply may moderate price growth in select segments, Dubai’s rental sector remains a core pillar of economic stability and long-term expansion.
For tenants, the market remains competitive but structured. For investors, the rental sector continues to offer strong liquidity and a reliable entry point into Dubai’s broader real estate ecosystem.
