As the UAE, Dubai in particular, witnesses a boom in the real estate sector, stakeholders and the country’s huge expatriate population are looking at the prospects for 2026. As per research reports, the rent for Dubai will increase by six per cent in 2026, which is at a slower pace compared to the previous years.
The rent growth is slowing to about 6 per cent year-on-year in November from 14 per cent in January, according to local media reports, which attribute this to increased supply.
According to Fitch Ratings, the UAE residential price and rent growth will continue to moderate in 2026. The data provided by Fitch states the prices have plunged by about 13 per cent year-on-year in November from 18 per cent in January. This hints that the real estate industry in the Dubai property market is turning more tenant-friendly, thanks to the increased supply following a strong double-digit increase over the past few years.
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“Rental increases of approximately four to six per cent are still expected in select, high-demand areas in 2026, particularly where supply remains constrained, and tenant competition is strongest,” Georgina Moyes, head of rentals at Metropolitan Premium Properties, told Khaleej Times.
Property prices have been on the rise in Dubai since the pandemic, thanks to millions who chose to relocate to the Emirates due to its economic trajectory. The government has also aided this migration via residency permits for retired and remote workers and the expansion of the 10-year golden visa programme.
Seasonal shifts
The rents are likely to rise to around 16 per cent during July and September when business slows down due to extreme heat. However, the rent could fall between October and November, which traditionally is the most active period for relocations, hiring and new corporate contracts.
At present, the annual upper-middle-class category rent per unit stands at approximately AED 11,900 per month. During the summer period, rents may fall to AED 6,000–7,000, though these declines are offset by strong performance between October and April, according to forecasts from Colife, a rental service in Dubai.
As for properties, the prices will also depend on asset positioning. Luxury properties are likely to experience milder corrections, while comfort- and business-class units are more exposed to seasonal volatility, according to reports.
Where to rent?
Real Estate agents predict that about 6,500 new residential units will be delivered in Abu Dhabi in 2026 amid continued population and employment growth, while 200,000 units are scheduled for delivery by 2027. Over 22,000 villas and 42,000 townhouses are set for delivery by 2030, according to developers.
There is a clear shift towards long-term leases and homeownership, with many treating Dubai as more of a permanent residence. This trend is mostly visible in districts such as Al Furjan, Jumeirah Village Circle and Jumeirah Lake Towers.
The majority of the new supply will be concentrated in Dubai Hills Estate, Business Bay, Downtown, Jumeirah Village Circle (JVC), Al Furjan and Dubai Marina. Other areas which will see new units coming up are Al Barari, Dubai Production City, Dubai Residence Complex, Tilal Al Ghaf, among others.
“Prime areas such as Downtown Dubai, Palm Jumeirah and Dubai Marina are likely to maintain rental strength in 2026,“ Georgina Moyes, head of rentals at Metropolitan Premium Properties, told Khaleej Times.
