Dubai: Tenants are leaving their homes for cheaper ones, while landlords in prime districts are cutting rents to hold on to them. Data shows that new leases have outnumbered renewals by 633 contracts in July and 2,139 in August. And this kind of change hasn’t been noticed since records began in January 2023. Renewals had led the way for 36 months straight.
We took a look at two sets of data to understand these shifts. We look at data from Property Finder which tracks landlord's asking rents on listings and data from fäm Properties which analyses the number of registered contracts. Both data sets show that tenants have had the upper hand, but what matters is, in which areas and how much they gain.
Supply drives the reset
There is a massive supply flooding the market and that could be the reason behind the repricing. The average number of apartments listed daily on Property Finder in September ran 55.1 per cent above a year earlier. Renter enquiries have grown 15.4 per cent but each listing is drawing 23 per cent fewer enquiries.
“With more homes competing for each tenant, landlords have had to reprice,” says Cherif Sleiman, Chief Revenue Officer at Property Finder. “This has been a gradual adjustment, not a sudden drop.”
The combined median apartment asking rent across ten key communities peaked at Dh135,000 in December 2025.It slid to Dh100,000 by June. But September brought a rebound to Dh105,000. Sleiman, however, cautioned that “one month does not make a trend, but it is an encouraging sign.”
Areas where rents fell
Prime and waterfront apartments took the hardest hits. Property Finder records Downtown Dubai asking rents were down 21.74 per cent between the Q3 of 2025 and Q3 of 2026, from Dh230,000 to Dh180,000. Asking rents in Dubai Marina dropped 16.13 per cent to Dh130,000. Meydan fell 13.33 per cent, Business Bay 12.5 per cent and Jumeirah Village Circle 10 per cent.
According to Sleiman, Downtown’s fall cannot be put down to a statistical anomaly. “Rents fell across every apartment size, so this is a genuine repricing and not simply more small units entering the market,” he notes. Palm Jumeirah apartments eased 4.76 per cent to Dh240,000 while Dubai Hills Estate held flat.
Data from fäm Property compares new leases for the nine months of 2026 from January to September with the same period last year. They record rents in Palm Jumeirah dropping to about 15 per cent, Downtown 11 per cent, Marsa Dubai 7.7 per cent, Business Bay 5.9 per cent and Dubai Creek Harbour 5.8 per cent. According to their data it's the small units or studio apartments that had dropped the most, with Business Bay studio rents down 18 per cent since January.
“The rental market has split in two. Rents are still rising in the more affordable outer communities, while they have flattened or fallen in the prime and waterfront districts, where a wave of new supply has given tenants more choice,” observes Firas Al Msaddi, CEO of fäm Properties.
Rental rates of bigger units like villas eased more gently. Property Finder finds lower asking rents in eight of ten communities. Arabian Ranches 3 fell 18.92 per cent, Mohammed Bin Rashid City 15 per cent and Dubai South 12.45 per cent. fäm Property’s data adds that new villa leases dropped 15.8 per cent in Al Hebiah Fourth and 9.9 per cent in Al Hebiah Third.
Where rents rose
Interestingly it is the outer and affordable communities that still saw their rents rise, according to fäm property data. New-lease apartment rents rose 11.3 per cent in Me’Aisem First, 10.3 per cent in Al Yelayiss 2, 9.1 per cent in Wadi Al Safa 2 and 7.9 per cent in Warsan Fourth. Al Warsan First gained 4.2 per cent.
Rents for villas did see a sharp rise but only in certain areas. fäm records that villas in Jabal Ali First saw rents rise by 16.9 per cent, Dubai Hills Estate up 11.1 per cent and Al Warsan First up 9.1 per cent. Property Finder notes a 15.15 per cent increase in rents in Al Furjan. Four-bedroom rents there climbed 9.4 per cent, yet three of five comparable villa types declined.
“The typical new tenant in Dubai is renting a studio to a two-bedroom apartment, with a budget of roughly AED 45,000 to AED 110,000 a year. These homes account for almost nine in ten new leases,” said Al Msaddi.
3 areas worth noticing
If you were considering apartments in Palm Jumeirah, Property Finder shows that asking rents there are down 4.76 per cent in Q3 2026 vs 2026. fäm properties shows that signed rental contracts in this area have fallen by a steep 15 per cent.
But if Downtown is on your list, here the asking rents fell about twice as fast as signed ones. Asking rents fell 21.74 per cent, against 11 per cent for signed rents.
Dubai Hills Estate saw its villa contracts up 0.96 per cent. fäm finds apartments up 4.8 per cent and villas up 11.1 per cent, at a median Dh550,000 in this area.
The two measures are not like for like, says Barney Crompton, Partner and Co-Founder of Eden Realty. “It’s important to distinguish between declining median rents and actual price reductions for comparable properties,” he says.
Premium stock behaves differently, he adds. “Prime properties with exceptional locations, views and finishes continue to command strong rental premiums.” Crompton sees Business Bay and Downtown “showing signs of stabilization”. Property Finder’s data shows Downtown with the steepest fall of any community it tracks.
Why tenants are choosing to move
Renewal rents have kept rising, anywhere between 4 to 14 per cent depending on unit type. New-lease rents for the same building and unit type sit 15.3 per cent below January levels.
“The reason for this is very simply about price,” Al Msaddi says. Moving once carried a penalty. Not any longer. “Tenants can now move to a comparable apartment for less than a renewal would,” he explains.
His conclusion is blunt. “Tenants who move are getting better value than those who stay.”
Crompton sees the same calculation at work. “When there is a significant financial advantage, relocating becomes more attractive,” he says. Landlords are adjusting. “Retaining a reliable tenant is often preferable to facing vacancy periods and additional leasing costs,” he observes.
Sleiman urges tenants to press their advantage. “This is a good time to compare options and negotiate,” he says. Landlords face a harder task. “Lowering the price alone may not be enough,” he warns. A listing’s quality, visibility and response speed “now matter more than ever”.
What renters want
Small homes are being most sought after. The one-bedroom apartments make up 43 per cent of new leases at a median Dh70,000. Studios hold 24 per cent atDh45,000 Two-bedrooms make up 22 per cent at Dh110,000.
Property Finder’s enquiry data points the same way. Studios or one-bedrooms top enquiries in seven of ten apartment communities. In Business Bay, one-bedrooms form 43.1 per cent of listings but draw 48.7 per cent of enquiries.
Leases for three-bedroom apartments rose 15 per cent year-on-year, and four-bedroom villa leases grew at 32 per cent. Three- or four-bedroom villas lead enquiries in eight of ten villa communities, Property Finder data shows..
Budget hunters are heading towards areas like Jumeirah Village Circle, Arjan, Dubai Sports City and Dubai South, Crompton reports. Newer communities though are drawing a different type of crowd. Al Yufrah 1, home to Emaar’s The Valley, saw registrations jump 144 per cent. Al Hebiah Second leases rose 47.6 per cent, fam data notes.
“Demand is largely driven by young professionals and families seeking modern properties, larger living spaces and better value for money,” Crompton says.
Al Msaddi traces the supply behind it. “Many homes bought off-plan in 2022 and 2023 are now complete, and investors are leasing them out.” Value for money is also what. “Tenants are moving to where the newest stock offers the most space for their money.”
The outlook going ahead
Crompton expects stability over the next three to six months. Areas with heavy handovers may face more pressure. Established villa communities such as Dubai Hills Estate and Arabian Ranches should hold up.
“Dubai is transitioning towards a healthier, more mature rental market where realistic pricing and property quality will be key differentiators,” he says.