If you are planning to move to a new home in Dubai and need movers and packers, now is the perfect time. With the rental prices showing early signs of moderation due to a wave of new supply, tenants may now find opportunities to move to more affordable units without the steep increases of the past few years.
The Shifting Rental Landscape
Dubai’s real estate market has been a global headline story over the past three years. Following the COVID-19 pandemic, demand for property in Dubai surged, fueled by government visa reforms, foreign investment, and an influx of expatriates. This drove rental prices up at record pace: from 2021 to 2023, average residential rents rose by nearly 60%, according to data from CBRE.
However, in 2025 the situation is different. After several years of relentless hikes, analysts are now observing the first signs of rental moderation, thanks to the sheer volume of residential units entering the market.
A Surge in Supply
The primary driver behind this shift is supply. Dubai is experiencing one of its biggest residential delivery cycles in over a decade.
- According to Cavendish Maxwell, almost 200,000 units are expected to hit the market during 2025 and 2026, compared with an annual average of just 40,000 units delivered between 2019 and 2023.
- In Asteco’s 2024 report, 63,900 apartments and villas were forecast to be delivered in 2025, nearly double the 33,625 completed in 2024.
- Major developers such as Emaar, Damac, and Sobha are completing large-scale master communities that add thousands of apartments, villas, and townhouses at once.
This scale of supply growth has started to tilt the balance of power from landlords back toward tenants.
Early Signs of Cooling Rents
The latest data shows that while rents are still higher year-on-year, quarterly figures reveal the first decline in years. Dubai residential rents dipped by 0.6% in the first half of 2025 compared to the first half of 2024. The second half of 2024 saw a sharp increase however, it seems to be going down in 2025, according to data from DLD.
Luxury and prime locations such as Downtown Dubai, Dubai Hills Estate, and Palm Jumeirah remain resilient, but even here, the pace of growth is slowing. While rents may not be dropping in these areas, tenants are increasingly finding it easier to negotiate renewal terms.
Why the Rental Market Is Stabilizing
Global rating agencies and real estate consultancies agree that surplus of residential units will put downward pressure on rents. According to Fitch Ratings, Dubai’s residential market will see moderation in rental growth or outright declines in the second half of 2025, continuing into 2026. S&P has highlighted that nearly 182,000 units are expected from projects presold in 2022–2023, creating a wave of completions by 2026, thus substantially increasing the supply of residential units in the market. Excessive supply, combined with moderate tenant demand, is expected to prevent landlords from continuing the double-digit annual rent hikes of the past three years.
However, in addition to the rising supply, there are some other factors as well that have contributed to the cooling rental trend:
- Tenant Shift Toward Buying
With mortgage rates stabilizing, DLD’s First-Time Home Buyer Initiative and new affordable communities launching, more long-term residents are choosing to purchase homes instead of renewing leases.
- Rental Transparency
The introduction of a Smart Rental Index has given tenants stronger grounds to contest rent hikes, forcing landlords to be more realistic.
- Greater Tenant Choice
New master-planned communities in Dubai South are offering modern units with better amenities at competitive prices, attracting tenants away from older developments.
Impact on Tenants
For Dubai residents, this shift offers some relief after years of steep rental increases.
- Negotiating Power
Tenants in non-prime areas now have more leverage to negotiate lower rents or request incentives such as free maintenance, flexible payment terms, or extra parking.
- Budget-Friendly Options
Mid-tier areas like JVC, International City, and Dubai Sports City are becoming more attractive for those seeking affordability without compromising on amenities.
- Luxury Tenants Benefit Too
Even in high-end communities, the slowdown means landlords are more open to offering longer lease terms or capped increases.
What Lies Ahead
While a market-wide rental crash is unlikely, given Dubai’s continued economic growth, an increase in incoming residents, and global investor appeal, it does seem that the Dubai residents will get some relief from sharp rental hikes, at least in the short term. Instead, the city is entering a period of rental stabilization, where tenants can expect a more balanced and predictable market.
The long-term view depends on whether demand can keep pace with the large supply pipeline. If completions continue at the projected pace and population growth slows, further downward pressure on rents is likely, especially in oversupplied apartment areas.
Final Thoughts
Dubai’s rental market is evolving. After years of rental hikes, 2025 is shaping up to be the year when supply finally catches up, offering tenants more choices and hence, more bargaining power. While luxury areas may remain expensive, the broader market is starting to stabilize, and in some communities, rents are already decreasing.
If you are planning to take advantage of these changes and move into a new home, you’ll need a trusted moving partner. You can easily find professional movers in Dubai on ServiceMarket, making your move smooth and stress-free while you enjoy the benefits of Dubai’s changing rental landscape.
