Apartment rents in Dubai Marina, Business Bay, and Jumeirah Village Circle (JVC) saw a double-digit drop – the highest drop among Dubai communities – in the third quarter of 2026 as the property market softened, according to property consultancy Savills’ Q3 2026 report.
Data showed that apartment rents in Marina, Business Bay, and JVC fell 12.8 per cent, 12.2 per cent and 10.4 per cent year-on-year, respectively, during the July-September 2026 period.
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Among the other residential communities that saw the highest year-on-year rent drops were Al Furjan (7.5 per cent), DIFC (7.3 per cent), Majan (5.1 per cent), Discovery Gardens (4.3 per cent), and International City Phase 2 and 3 (0.4 per cent).
Villa and townhouse communities account for two of the three steepest annual declines. Arabian Ranches 3 fell 15 per cent, while Damac Lagoons slipped 13.4 per cent. Savills said annual rental pressures remain evident in the segment.
The relatively modest quarterly movements “suggest early signs of stabilisation”, the report said, although the trend remains uneven across locations.
Total rental transactions rose 16 per cent quarter-on-quarter to 181,900 in Q3, up from 156,200 in Q2 and broadly in line with the 180,600 recorded in Q3 2025.
The share of new leases rose to 44 per cent from 36 per cent in Q2, supported by stronger new-leasing activity in Business Bay, JVC, Jumeirah Village Triangle and Downtown Dubai.
Off-plan down, ready market up
In the sales market, Dubai recorded 34,500 residential transactions in Q3, down 4 per cent on the previous quarter and 38 per cent year-on-year. Transacted value fell to Dh70.8 billion, down 14 per cent from Dh82.6 billion in Q2 and 46 per cent from Dh132.2 billion a year earlier.
The decline was concentrated in off-plan, where value fell to Dh45.7 billion from Dh61.3 billion. Ready-market value rose to Dh25.1 billion from Dh21.3 billion, which Savills said points to stronger momentum in completed properties.
Average apartment prices fell 4.8 per cent on the quarter to Dh1,817 per sq ft, while villa and townhouse prices slipped 3.3 per cent to Dh1,523.
Activity was concentrated, with the top five developers accounting for 47.9 per cent of transactions.
Azizi Developments led with 21 per cent, ahead of Emaar Properties (9 per cent), Damac Properties and Binghatti (7 per cent each) and Imtiaz (4 per cent). The top five communities took 33.7 per cent of deals, led by Azizi Venice at 12 per cent.
5,000 units launched
Only about 5,000 units were launched in Q3, taking launches for the first nine months to around 50,000, roughly 64 per cent below the 137,300 launched in the same period last year.
About 26,500 units were handed over in the first half of 2026, around 85 per cent of them apartments. Savills expects a further 50,000 to 60,000 in the second half, taking 2026 deliveries to between 75,000 and 85,000, with the remainder likely to slip into 2027.
Rachael Kennerley, Director of Research at Savills, described the market as entering “a phase of rebalancing rather than a reversal”.
Savills expects lower launches and delayed completions to ease near-term supply pressure. However, more than 525,000 units are scheduled for delivery between 2027 and 2030, making population and household growth increasingly important for absorption.