New Rent Contracts in Dubai Rise 10% as Demand Strengthens
According to data released by the Dubai Land Department (DLD), total registered tenancy contracts reached 1.38 million, up 6% in volume and 17% in value year-on-year, amounting to Dh126.4 billion.
Dubai’s rental market continued its upward trajectory in 2025, with new tenancy contracts exceeding 513,000 a 10% increase compared to the previous year.
What’s Driving the Rental Surge?
DLD attributes the strong performance to three primary factors:
- Rising population and economic expansion
- Diversified residential supply across price points
- Clear and stable regulatory frameworks
As more professionals and businesses relocate to Dubai, rental housing remains the first entry point into the property market.
Renting as a Gateway to Ownership
Authorities describe the rental sector as a “natural gateway to homeownership,” aligning with the Dubai Real Estate Sector Strategy 2033.
The strategy aims to create a sustainable market balance between renting and ownership encouraging long-term residency while maintaining flexibility for new arrivals.
Development Pipeline Expands
Development activity accelerated alongside rental growth:
- 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
This expanding pipeline suggests developers remain confident in medium- to long-term housing demand.
Sales Market Strength Mirrors Rental Growth
The ownership segment also strengthened in 2025:
- Sold units increased 25% to 147,500
- Total transaction value rose 30% to Dh280 billion
- Villa sales value increased 12%, despite lower transaction volume
The villa trend indicates buyers are shifting toward higher-value properties, even as rental demand remains robust.
Regulatory Ecosystem Expands
Dubai’s real estate infrastructure also grew:
- 4,122 new real estate offices registered
- Total active offices reached 10,182
- 14,364 real estate licences issued across sectors
This expansion reflects increasing participation from brokers, leasing professionals, developers, and land traders.
Key Takeaway
The 10% increase in new rental contracts confirms that Dubai’s property market remains demand-driven rather than speculative. Strong rental growth, rising development activity, and increasing sales volumes collectively indicate a maturing ecosystem built on both flexibility and long-term confidence.
As supply continues to expand and regulatory clarity improves, Dubai’s rental sector is expected to remain a foundational pillar of the emirate’s broader real estate strategy.
