A new chapter for Dubai rents in 2026
Will Dubai rents fall in 2026? It’s the question renters are quietly hoping for and landlords are watching closely. The short answer: in some places, yes – but not across the board. Dubai’s rental market is settling into a new rhythm, shaped by seasonal movement, rising vacancy and a growing base of long-term residents who are here to stay.
A calmer phase for Dubai’s rental market
After years of fast growth, Dubai’s rental market is slowing down in 2026. The city’s population is approaching four million, and affordability is finally part of the conversation. More homes on the market, different tenant habits, and the shift from short- to long-term rentals are all helping rents settle into a steadier pace.
Highs, lows, and the months in between
Vacancy across Dubai is expected to average around 12 per cent in 2026, with noticeable swings through the year. Summer tells a different story to winter. Between July and September, vacancy is likely to peak at roughly 16 per cent. The heat, school holidays, and quieter business months see some tenants leave and new arrivals slow down.
By October and November, vacancy falls sharply to around 5 per cent as hiring picks up and relocations return. For tenants, summer could bring a bit of relief. For landlords, it’s a reminder to plan for quieter months rather than relying on consistent demand all year.
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Will rents actually fall in 2026?
In parts of the market, yes – particularly during low season. Mid-term rentals are expected to feel the most pressure, with average summer rents dipping by up to 5 per cent compared to recent years. High-season pricing, however, is holding steady. From October to April, rents are forecast to sit close to 2024–2025 levels, with little movement either way.
What investors need to know
Data from Colife shows that long-term leases in areas like Al Furjan, Jumeirah Village Circle, and Jumeirah Lake Towers are now delivering stronger and more consistent returns. Compared with mid-term rentals, annual contracts may not grab attention with peak pricing, but they reduce vacancy and smooth cash flow across the year. For investors thinking three to five years ahead, stability is starting to win.
What lower rents mean for everyone
More affordable housing makes it easier for professionals, young families, and mid-income earners to move to– and stay in – Dubai. It also helps employers attract and retain talent, reduces relocation costs, and lowers tenant turnover. Over time, a steadier rental market benefits everyone: tenants, landlords, and the city alike.
Images: Archive
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