Betterhomes: Dubai Residential Rents Rise 3.1% in Q2 2026
Dubai's residential rental market continued to record annual rental growth during the second quarter of 2026, although increasing housing supply is beginning to shift negotiating power towards tenants, according to Betterhomes' latest Dubai Residential Market Report.
Based on Dubai Land Department (DLD) transaction data, the report found that average residential rents increased 3.1% year-on-year in Q2 2026, while remaining broadly unchanged from the previous quarter, reflecting what Betterhomes described as a more balanced leasing market.
Average apartment rents reached USD 19,804 (AED 72,681) during the quarter, up 2.9% from a year earlier. Average villa rents climbed 5.7% year-on-year to USD 76,739 (AED 281,633), while townhouse rents edged down 0.9% to USD 44,369 (AED 162,835).
Tenant demand strengthens
While the DLD figures reflect the broader market, Betterhomes' own leasing data pointed to a significant acceleration in tenant activity.
Tenant enquiries rose 20% year-on-year and 18% quarter-on-quarter during Q2, as some prospective buyers postponed purchase decisions while existing residents took advantage of greater housing choice and improved value in the rental market. Enquiries increased by more than 60% between April and June, including a month-on-month rise of over 20% in June alone, indicating that leasing momentum strengthened as the quarter progressed.
The brokerage said the trend reflected increased mobility among Dubai's existing residents, with more tenants upgrading, relocating or seeking better value rather than moving out of necessity.
More supply improves tenant bargaining power
Betterhomes said the rental market became increasingly competitive as available housing stock expanded across many communities.
Although new Betterhomes leasing listings declined 8% from the previous quarter, overall available inventory increased significantly in many locations, providing tenants with a wider selection of homes and strengthening their negotiating position.
The report said higher supply has begun to place greater pressure on rents for newly signed leases, particularly in the apartment segment, while renewal rents have continued to be supported by the RERA Rental Index.
It also noted that more landlords are accepting rental payments spread across a higher number of cheques, reflecting a gradual shift towards a more balanced market compared with recent years.
Jumeirah Islands leads rental growth
At the community level, Jumeirah Islands recorded the strongest annual growth in villa rents, rising 25% year-on-year.
Among apartment communities, Al Khail Heights posted the highest rental increase at 18%, followed by Living Legends (16%) and Jumeirah Village Triangle (14%).
Marina and Business Bay top leasing activity
According to Betterhomes' leasing data, Dubai Marina, Business Bay, Jumeirah Beach Residence, Sheikh Zayed Road and Palm Jumeirah were the busiest apartment rental markets during the quarter.
For villas and townhouses, the most active leasing communities were Arabian Ranches, The Springs, Tilal Al Ghaf, Dubai Hills Estate and Jumeirah Park.
The report concluded that while Dubai's leasing market remains resilient, growing supply is creating a healthier balance between landlords and tenants, making realistic pricing and high-quality properties increasingly important in securing new leases.
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