Dubai Rental Market Moves Toward a New Record as New Leases Surge

Oct 07, 2026
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Dubai's rental market continues to surge, having recorded 257,284 rental contracts, from January to August 2026 in Dubai properties freehold jurisdiction. This number is over five percent higher than the previous year when Dubai had the highest-ever number of contracts, that is, 377,944.

The data also shows that the demand is there for the Dubai real estate, causing issues across both existing tenants as well as new ones. The month of August seems to add to this trend as 39,645 contracts were registered, which translates to 3.79 percent rise over July.

Key rent statistics for August include:

39,645 contracts.
20,611 new contracts, which is 19.4% higher than the last year’s figure.
19,034 renewals, which is 4.4% more than last year.
A total of 257,284 contracts registered throughout the months from January to August.

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New Leases Become a Major Driver of Growth

The increase in new leases is one of the main characteristics of the leasing market in Dubai in 2026. At the same time, renewals' rise remains in the market, but its pace is noticeably beyond new contracts growth that shows the increase in mobility of tenants within the emirate.

According to Firas Al Msaddi, CEO of fäm Properties, the leasing market continues to be one of the key indicators of people's enthusiasm for living and working in Dubai. He mentions that some property renters relocate to a different place to get a more attractive rental price.

For those wishing property investment in Dubai, the jump in the number of new contracts is valuable information about the tenant flows and demand across different districts. Such results are important to offices for rent in Dubai, as the wider leasing practices reflect the growing interest of people and businesses to settle in new or change their location.

Al Warsan First Leads Dubai’s Rental Areas

Rental activity was spread around a number of prominent freehold communities during the first eight months. Al Warsan First had the most contracts being registered, with Jebel Ali First and Al Barsha South Fourth in second and third places respectively.

The most popular districts were as follows:

Al Warsan First: 23,894 contracts.
Jebel Ali First: 21,687 contracts.
Al Barsha South Fourth: 20,607 contracts.
Business Bay: 16,637 contracts.
Nadd Hessa: 13,871 contracts.
Marsa Dubai: 13,692 contracts.

On the high end of the marketplace, luxury villas for rent belong to a totally different category, although they also are part of the overall housing stock for tenants. The current strength of leasing activity is supportive of the whole Dubai real estate market where demand for leasing remains one of the important segments of overall property activity.

The Most Rented Homes Are One-Bedrooms

For the first eight months of 2026, one-bedrooms were the most popular type of rental property as they were involved in 105,880 rental agreements, or 41% of the total.

The breakdown of rental agreements is:

One-bedrooms: 105,880 agreements — 41%
Two-bedrooms: 59,420 agreements — 23%
Studios: 55,336 agreements — 22%
Three-bedrooms: 25,507 agreements — 10%
Four-bedrooms: 8,625 agreements — 3%

This data proves that one-bedrooms are significant contributors to renting activities in Dubai due to the fact that they provide a large number of advantages to tenants when they search for a new 1 bedroom apartment for rent in Dubai. At the same time, it emphasizes their contribution to the real estate market, where investors make money and get solid opportunities for real estate invetment Dubai.

August Sales Add Strength to the Property Market

The strong rental performance coincided with robust sales activity in August. As per DXBinteract statistics, Dubai saw a total of 12,018 property deals amounting to AED28.6 billion ($7.79 billion) in August.

Off-plan transactions led the pack:

8,359 off-plan transactions valued at AED16.3 billion ($4.44 billion)
3,659 resale transactions valued at AED12.4 billion ($3.38 billion)
Dubai South ranked as the leader in primary market transactions for the sixth month in a row with 1,908 transactions valued at AED2.3 billion ($626 million)

Among the property sales, the most notable was that of apartments, as 9,974 units were sold for AED15.7 billion. Villas came in second with 1,354 sales valuing AED7.9 billion. There were also 183 plots sold for AED2.6 billion and 420 commercial transactions worth AED1.5 billion. This indicates continued interest in real estate alongside rental demand for various residential luxury properties for sale. On the other hand, the sales figures below AED2m show the ongoing relevance of the best real estate in Dubai for buyers looking for less expensive options.

Estate Values Demonstrate Strong Movement Within Price Categories

The transactions registered during August were spread over different price categories with a majority of activity recorded in lower and mid-market transactions. The market distribution is as follows:

Properties below AED1 million: 42.8 %.
AED1 million to AED2 million: 33.2 %.
AED2 million to AED3 million: 10.9 %.
AED3 million to AED5 million: 7.25 %.
Above AED5 million: 5.7 %.

Among transactions, the most expensive apartment sold was located in The Address, Jumeirah Gate Tower 2 at Jumeirah Beach for AED86 million while for the villas, the most expensive Signature Villa was sold for AED110 million. The wide spectrum of transactions continues to indicate high demand for properties for rent in Dubai as the commercial sector recorded 420 transactions in August as well. For those interested in buying commercial properties for sale in Dubai, it can be noted from the monthly figures that the commercial transactions represented part of the greater activity in the real estate sector in Dubai.

What is Meant by the Rental Record in Dubai

The first eight months of 2026 have put the freehold rental market in Dubai on the path to another record-breaking year. A total of 257,284 agreements have been signed, with August alone bringing in 39,645 reports, which indicates that the year is matching the performance seen in 2025. The combination of sales activity and rentals also gives a better understanding of the market. Apartment for rent are at the center of rental activity, whereas, in terms of sales activity, Dubai’s market includes apartments, villas, lands, and commercial assets.

For a real estate company in Dubai, these figures are indicative of the current rental demand and tenant preferences. The increase of 19.4 percent in the number of newly signed leases indicates a substantial movement of tenants rather than the growth driven solely by lease renewals. The majority of newly signed leases pertain to one-bedroom properties, whereas Al Warsan First, Jebel Ali First, and Al Barsha South Fourth are the leaders in terms of the total number of signed agreements.

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