Dubai Rental Prices Set to Stabilise as New Supply Enters the Market

Dubai, UAE, Monday 23rd February 2026 - Dubai’s rental market is entering a period of stabilisation, according to the latest data from the Dubai Land Department and Allsopp & Allsopp, as increased supply begins to moderate price growth across key segments.

In January, Allsopp & Allsopp recorded a 48% increase in rental transaction volume alongside a 5% rise in total rental value. While activity remains strong, the modest value growth relative to transaction volume suggests that rents are no longer accelerating at the pace seen in previous years.

Year-on-year figures indicate further rebalancing with the DLD reporting that renewals declined by 15% in volume and 9% in value, while new rental contracts fell by 3% in volume and 4% in value. With the dip in renewals and new contracts, rental prices are expected to even out over the course of 2026.

The average lettings price across apartments and villas and townhouses has dipped 25% year-on-year, signalling that pricing pressure is easing in certain areas of the market.

“After several years of consistent rental growth, we’re now seeing the market move into a phase of stabilisation,” says Lewis Allsopp, Chairman of Allsopp & Allsopp.“Demand is still very much there, but as more supply comes to market, particularly apartments, the pace of rental prices increases is slowing. This is a healthy sign for Dubai showing that the market is becoming more balanced and sustainable for the long term.”

Supply is playing a central role. In the sales market, nearly 80% of January’s off-plan transactions were apartments as well as off-plan accounting for 78% of the total sales value. As more apartments enter the pipeline compared to villas and townhouses, increased inventory is expected to place further downward pressure on apartment rents.

Apartments have already recorded a year-on-year dip of 11% in rental volume and 5% in value and this is where the biggest price adjustment is expected to occur. In contrast, villas and townhouses remain more supply-constrained, with a 10% dip in rental volume year-on-year and just over 1% in value, but prices remain competitive and attractive for tenants, supported by steady month-on-month activity.

Importantly, demand remains robust. Month-on-month, Allsopp & Allsopp reported a 70% increase in listings, 50% growth in registrations, and a 53% rise in viewings when compared to December, demonstrating continued tenant activity even as prices begin to stabilise. January always tends to be slightly higher month on month due to the influx of residents at the start of the year but we expect this to continue throughout the year.

The data points toward a maturing rental market: demand remains strong, but growing apartment supply is easing upward pressure on rents. Dubai’s rental landscape is not slowing; it is recalibrating toward greater balance.

About Allsopp & Allsopp

Allsopp & Allsopp is Dubai’s highest-awarded independent real estate agency. Founded in 2008 by Lewis Allsopp (Chairman) and Carl Allsopp (CEO), the company is recognised for its innovative, transparent approach to real estate, using data-driven tools and expert insights to help clients make informed property decisions.

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