Three Areas in Dubai with the Most Significant Rent Decrease

Three areas in Dubai with the most significant rent decrease.
The Dubai housing rental market faced a notable drop in prices in several popular neighborhoods during the summer of 2026. According to the third-quarter report of a real estate consultancy, the annual rent for apartments in Dubai Marina decreased by 12.8%, in Arabian Business by 12.2%, and in Jumeirah Village Circle (JVC) by 10.4%.
This trend was also observed in other neighborhoods such as Al Furjan, (DIFC), Majan, and Discovery Gardens. In the villa and townhouse market, rents also fell; with rents in Arabian Ranches 3 dropping by about 15% and in Damac Lagoons by 13.4%.
Despite the decrease in rents, the rental contract market remained active. The number of rental transactions in the third quarter reached approximately 181,900 contracts, a 16% increase compared to the previous quarter. The share of new rental contracts also increased from 36% in the second quarter to 44%.
Residential sales transactions also decreased. In the buying and selling market, Dubai recorded about 34,500 residential transactions in the third quarter; 4% less than the previous quarter and 38% lower than the same period last year.
The value of transactions reached 70.8 billion dirhams; whereas this figure was 82.6 billion dirhams in the second quarter and 132.2 billion dirhams in the third quarter of last year.
The off-plan sector experienced the most significant decline, with its transaction value dropping from 61.3 billion to 45.7 billion dirhams. In contrast, the value of transactions for ready-to-deliver properties increased from 21.3 billion to 25.1 billion dirhams.
The average price of apartments also fell by 4.8% to 1,817 dirhams per square foot. The price of villas and townhouses also decreased by 3.3% to 1,523 dirhams per square foot.
New constructions have decreased. In the third quarter of 2026, only about 5,000 new residential units were introduced in Dubai. Thus, the number of units introduced in the first nine months of the year reached about 50,000 units; approximately 64% less than the 137,300 units in the same period last year.
In the first half of the year, about 26,500 residential units were delivered, most of which were apartments. Savills predicts that between 50,000 to 60,000 more units will be delivered in the second half of the year, bringing the total delivered units in 2026 to about 75,000 to 85,000 units.
However, supply in the coming years will remain an important issue for the Dubai housing market; as according to this report, more than 525,000 residential units are planned for delivery between 2027 and 2030.
Source: Gulf Times