The new reason is the arrival of new housing units to the market in Dubai. In the past, new projects were not completed in line with demand, which led to rent increases. While short-term rentals will still remain strong, the long-term rental market is expected to be more favorable for tenants this year.

UAE: The real estate market in Dubai is witnessing significant changes in 2025, especially in the rental sector. After soaring rental rates in recent years, reports indicate that the market has become more stable this year and rents have decreased in some areas. This is a great relief for tenants in Dubai.

The decline in rental rates in Dubai is a relief for UAE residents. According to the released figures, there were major changes in the rental market in Dubai in 2025. The main reason behind this change is that more than 72,000 new homes came on the market this year. In the past, the reason for the increase in rents was that new projects were not completed according to demand. However, in 2024 and early 2025, as many residential projects were completed and hit the market , the supply increased. This put pressure on rental rates and led to a decrease in prices in many areas.

While some apartment rents have increased by up to 7%, they have decreased by up to 6.2% in Bur Dubai and Deira. There has been a slight increase in the rents of luxury apartments in prime locations such as Dubai Marina and Downtown Dubai. However, prices have decreased by up to 5% in some areas. Moreover, many people are coming to stay for a short period of time.

Tenants now have more choices in the UAE. Apartments have become more affordable in many areas where rents were previously high. This gives tenants more opportunities to choose homes that suit their budget and lifestyle. In addition, there is a possibility of improvements in other amenities and services available to tenants, as landlords will be forced to offer better deals to attract new tenants.

Rents have risen by up to 9% in many locations due to the high demand for villas. However, the situation is different for high-end villas. Some 5-bedroom villas in Dubai Hills Estate have seen prices rise by up to 50%. In other locations, rents for 4-bedroom luxury homes have fallen by 1-9%.

The most popular places to rent long-term are:
- Affordable apartments: Bur Dubai, Arjan
- Mid-range apartments: JVC, Business Bay
- Luxury apartments: Dubai Marina, Downtown Dubai
Let's check out the best places to rent a monthly apartment:
- If you're looking for luxury apartments: Dubai Marina, Downtown, from Dh7,100 to Dh16,300
- Mid-range apartments: JVC, Business Bay - from Dh4,600
- Low-cost apartments: International City, Deira - from Dh3,000
- Affordable villas: - from Dh12,900 to Dh15,700
- Luxury villas: Palm Jumeirah, Dubai Hills Estate - up to Dh171,000