By Staff Reporter
Dubai: After years of rising rents, UAE residents might finally be catching a break.
According to new data from Bayut and dubizzle, the first half of 2025 saw Dubai’s rental market enter a phase of much-needed stability — and in some cases, even declining prices, especially for high-end properties and select villa types.
With more than 72,000 new homes expected to enter the market this year, tenants now have greater choice and better flexibility, whether they’re looking to rent short-term or settle in for the long haul.
Where rents are rising, dropping
Affordable apartments still saw modest increases of around 7%, but some units in Bur Dubai and Deira actually got cheaper — dropping by up to 6.2%. In contrast, luxury apartments in prime areas like Dubai Marina and Downtown Dubai saw only small hikes or even price drops of up to 5%.
When it comes to villas, affordable and mid-tier homes are still in demand, with rents rising up to 9% in popular areas like DAMAC Hills 2 and Mirdif. But the high-end villa segment tells a more mixed story — some 5-bed villas in Dubai Hills Estate saw prices surge by over 50%, while 4-bed luxury homes in several communities saw rents ease by 1–9%.
Most searched communities for long-term leases:
Apartments (affordable): Bur Dubai, Arjan
Apartments (mid-tier): JVC, Business Bay
Apartments (luxury): Dubai Marina, Downtown Dubai
Villas (affordable): DAMAC Hills 2, Mirdif
Villas (mid-tier): JVC, Al Furjan
Villas (luxury): Dubai Hills Estate, DAMAC Hills
Short-term rentals stay in demand
Dubai’s thriving short-term rental scene shows no signs of slowing. Tourists and residents alike continue to flock to daily and monthly rental options, especially in lifestyle-friendly hubs.
Top monthly rental areas:
Luxury apartments: Dubai Marina, Downtown, Meydan City – from Dh7,100 to Dh16,300 per month
Mid-tier apartments: JVC, Business Bay – as low as Dh4,600/month
Budget apartments: International City, Deira – from Dh3,000/month
Affordable villas: DAMAC Hills 2 – Dh12,900 to Dh15,700/month
Luxury villas: Palm Jumeirah, Dubai Hills Estate – up to Dh171,000/month
Top daily rental picks:
Luxury apartments: JBR, Downtown, Dubai Marina – Dh516 to Dh762/day
Luxury villas: Palm Jumeirah – Dh6,960/day (14.6% rise)
Mid-tier: Business Bay, JVC – Dh384 to Dh472/day
Budget: Bur Dubai, DSO – as low as Dh206/day
Haider Ali Khan, CEO of Bayut and dubizzle, believes the stabilising market is nudging renters to consider owning a home — especially with new initiatives like Dubai Land Department’s First-Time Home Buyer programme guiding the decision.
Source: Gulf News
