Dubai rents ease in select neighborhoods as new housing supply enters the market

Several residential communities in Dubai are witnessing stabilization or slight declines in rental prices in early 2026, offering limited but welcome relief to tenants after sharp increases recorded during 2023 and 2024.

Property analysts attribute this shift primarily to a wave of new housing supply, which has increased competition among landlords and strengthened tenants’ negotiating power in certain mid-market areas.

Dubai areas seeing stabilising or easing rents

Neighborhoods with large volumes of new residential stock are showing the most noticeable moderation:

Jumeirah Village Circle (JVC)
Often described as an “all-rounder,” JVC offers a wide mix of apartments and villas. Its continuous project deliveries have helped keep rents competitive, especially when compared with nearby communities such as Jumeirah Lake Towers (JLT).

Arjan
Located next to Al Barsha, Arjan’s low-rise developments and steady inflow of new buildings have contributed to easing rental pressure in the area.

Dubai Silicon Oasis (DSO)
A technology-focused, family-friendly district, DSO continues to offer a stable live-work-play environment. Rental prices here have remained relatively steady due to balanced supply and demand.

Dubai Sports City
Popular among residents with active lifestyles, Sports City continues to provide competitively priced rentals. However, limited public transport connectivity remains a consideration for tenants.

Discovery Gardens
This long-established residential area is experiencing stable to slightly softer rents, supported by availability and competitive pricing.

Dubai South (near Expo City)
Positioned as an affordable residential option for 2026, Dubai South features newer buildings and mid-market apartments, keeping rental growth in check.

International City and Al Warsan
These areas remain among Dubai’s most affordable rental pockets, with studio apartments available at lower price points compared to most of the city.

Wider Dubai rental market outlook

Despite easing in select communities, experts forecast an average city-wide rent increase of around 6% in 2026, driven by ongoing population growth, job creation, and sustained investor interest.

Prime and established locations such as Downtown Dubai, Palm Jumeirah, and Dubai Marina are expected to maintain strong demand and elevated rents, largely due to limited new supply and high desirability.

A cautious reprieve for tenants

While the moderation in some neighborhoods does not signal a broad market correction, it does highlight a more balanced phase in Dubai’s rental cycle. For tenants, especially in mid-market communities, 2026 may offer greater choice, improved negotiation leverage, and slower rent growth compared to recent years.