Dubai Rental Market Nears Annual Record After 214,445 Contracts in 7 Months
Dubai’s rental market is heading toward another annual record after 214,445 residential tenancy contracts were registered between January and July 2026. The figure is already 1.9% above the corresponding period last year, while July alone added 38,197 contracts, signaling continued demand for housing across the emirate.
Of July’s agreements, 18,431 were new contracts, and 19,766 were renewals. Meanwhile, Dubai’s rental market remains heavily concentrated in smaller homes, with one-bedroom properties accounting for 41% of all contracts registered during the first seven months.
Dubai Rental Demand Continues to Build
The latest figures put the market on track to surpass the 377,660 registered rental contracts recorded in 2025, which was itself a record year. Consequently, the 2026 performance points to sustained tenant demand despite broader regional and economic uncertainty.
Firas Al Msaddi, CEO of fäm Properties, said, “The level of rental activity overall is a good sign of market resilience. The volume of renewals alone shows that, regardless of regional uncertainty over the last few months, people still see Dubai as one of the best places in the world to live and work.”
The composition of rental contracts also provides insight into where demand is concentrated. One-bedroom homes accounted for 88,327 contracts, followed by two-bedroom properties with 49,894 contracts and studios with 48,186 contracts.
Three-bedroom homes represented 21,038 contracts, while four-bedroom properties accounted for 6,962. Therefore, apartments designed for individuals, couples, and smaller households continue to account for the largest share of Dubai’s registered tenancy market.
| Property type | Contracts | Share |
|---|---|---|
| 1 bedroom | 88,327 | 41% |
| 2 bedrooms | 49,894 | 23% |
| Studio | 48,186 | 22% |
| 3 bedrooms | 21,038 | 10% |
| 4 bedrooms | 6,962 | 3% |
Al Warsan First Leads Dubai’s Rental Activity
Rental demand is spread across a wide range of established residential and mixed-use districts. However, Al Warsan First recorded the highest number of registered contracts through July, with 20,830 agreements.
Jebel Ali First followed with 18,478 contracts, while Al Barsha South Fourth recorded 16,489. Business Bay registered 13,728 agreements, placing the central business district among the emirate’s most active rental locations.
Nadd Hessa recorded 11,710 contracts, followed by Marsa Dubai with 11,229. Al Thanyah Fifth, Wadi Al Safa 5, Al Barsha South 3, and Dubai Investment Park First also ranked among the leading areas.
| Area | Rental contracts |
|---|---|
| Al Warsan First | 20,830 |
| Jebel Ali First | 18,478 |
| Al Barsha South Fourth | 16,489 |
| Business Bay | 13,728 |
| Nadd Hessa | 11,710 |
| Marsa Dubai | 11,229 |
| Al Thanyah Fifth | 8,976 |
| Wadi Al Safa 5 | 7,269 |
| Al Barsha South 3 | 7,186 |
| Dubai Investment Park First | 7,006 |
The rental figures coincide with continued activity in Dubai’s wider residential sales market. In July, the emirate recorded 13,872 property transactions worth AED34.5 billion, with off-plan properties accounting for 9,585 transactions valued at AED20.5 billion.
Resale transactions added another 4,287 deals worth AED14 billion. Based on the supplied figures, off-plan properties represented approximately 69% of July sales by transaction volume.
Dubai Property Market Maintains Broad-Based Activity
Apartments remained the dominant property type in Dubai’s July sales market, accounting for 11,759 transactions worth AED17.8 billion. Villa sales reached 1,322 transactions worth AED 7.8 billion, while 268 plot transactions generated AED 6.9 billion.
Commercial properties, including offices and shops, accounted for another 515 transactions valued at AED1.9 billion. Meanwhile, Dubai South recorded the highest sales volume for the fifth consecutive month, with 2,351 transactions worth AED2.6 billion.
Of those Dubai South transactions, 2,231 were off-plan deals with a combined value of AED2.3 billion. The district’s continued performance highlights the growing importance of emerging residential and mixed-use communities within Dubai’s broader property market.
At the premium end of the market, the most expensive apartment sold in July changed hands for AED166 million at Aman Residences Tower 2 in Jumeirah Second. The month’s highest-value villa sale reached AED73 million at The Oasis – Lavita.
However, the majority of transactions remained concentrated below the ultra-luxury segment. Properties priced below AED1 million accounted for 43.4% of July sales, while another 30.3% fell between AED1 million and AED2 million.
Together, those two categories accounted for 73.7% of all transactions, indicating that Dubai’s property activity extends well beyond its high-value luxury segment. Therefore, the city’s current real estate momentum reflects demand across different price points rather than relying solely on premium and ultra-prime transactions.
With rental registrations already exceeding those of the same period last year and the 2025 annual record within reach, Dubai’s housing market is entering the second half of 2026 with sustained activity. More importantly, the combination of strong rental renewals, demand for smaller homes, and continued sales across established and emerging districts shows how deeply embedded residential demand remains in the emirate’s property market.