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Rental Rates in Dubai in 2026: Growth of Up to 6% Amid Population Increase

Rental Rates in Dubai in 2026: Growth of Up to 6% Amid Population Increase

"Eksperci spodziewają się spowolnienia tempa wzrostu, nasilenia konkurencji między obiektami i powstania bardziej zrównoważonego rynku wynajmu."

February 2, 2026

Section 1

Dubai’s residential rental market is expected to continue growing in 2026, though at a more moderate pace compared to previous years. According to experts, rental rates may increase by 4–6%, primarily driven by the continued population growth of the emirate, which surpassed 4 million people in 2025.

The greatest pressure will be felt by tenants in areas where housing supply remains limited. At the same time, locations with active delivery of new residential projects will see increased competition among landlords and tenants, which will help restrain rental growth.


According to market experts, Dubai’s rental market is entering a more mature and balanced phase. After the significant growth of recent years, 2026 is expected to bring stable but moderate rental increases—within the 4–6% range, mainly in areas with high demand and constrained supply.

The most resilient performance will remain in segments where supply shortages are structural. These include villas, townhouses, and spacious two- and three-bedroom apartments located in coastal areas and established master-planned communities.


Demand continues to be supported by the inflow of professionals, investors, and high-net-worth residents from around the world. In 2025, Dubai’s population exceeded 4 million people, reaching a historic high and continuing to exert pressure on the rental market.

Section 3

According to market participants, Dubai’s rental market is gradually becoming more tenant-oriented. This shift is driven by the active expansion of residential supply: around 200,000 new housing units are expected to be delivered by 2027, and by 2030 — 22,000 villas and 42,000 townhouses.


The majority of new supply will be concentrated in areas such as Dubai Hills Estate, Business Bay, Downtown, Jumeirah Village Circle (JVC), Al Furjan, and Dubai Marina. In these locations, increased supply will intensify competition, especially for older residential stock.


At the same time, minimal new construction is expected in several villa communities, including Al Barari, Dubai Production City, Dubai Residence Complex, and Tilal Al Ghaf, where upward pressure on rental rates may persist.


Amid rising competition, landlords are becoming more flexible. Increasingly, the following are being offered:

  • rental payments in multiple cheques;
  • digital payment options;
  • individual rental terms;
  • additional incentives for tenants, including minor upgrades and extended service packages in older buildings.


Rental demand will continue to be driven by population growth and the inflow of new expatriates, who in most cases begin their stay in the city by renting. This will support interest in well-connected, infrastructure-rich areas located near business hubs.


Premium locations such as Downtown Dubai, Palm Jumeirah, and Dubai Marina are expected to maintain rental stability in 2026. At the same time, areas with a high volume of new supply may face pressure on older or non-renovated properties.