Dubai’s residential leasing market is transacting at levels 12.5 per cent below those recorded in March 2025, according to data presented at betterhomes‘ second Dubai property market webinar.
The session, which took the format of a follow-up Q&A focused on client questions, identified leasing as the area of greatest concern among participants.
Data shared during the webinar showed that enquiry activity had recovered to around 30 per cent of typical levels following a dip at the start of the month, while rental supply continues to rise as landlords exit the short-term rental sector and return properties to the long-term market.
Dubai rental transactions fall 12.5% below March levels amid supply surge
“Leasing is need-driven, not sentiment-driven. While enquiries initially dropped at the start of the month, activity gradually regained momentum, recovering to around 30% of typical levels. Tenants are more price-sensitive and are taking the time to compare options. Landlords who price correctly and present their properties well are securing tenants, but the market has become more competitive,” Rupert Simmonds, Director of Leasing at betterhomes said in a statement.
The panel noted that rental pricing has already come down, reflecting conditions that follow consecutive years of growth. The webinar panel described the current environment as “undoubtedly a price-sensitive market,” with the number of new rental enquiries per listing having fallen compared to a year ago.
This shift in enquiry patterns reinforces the case for landlords to recalibrate expectations. Betterhomes said the data points to a market where success depends on realistic pricing rather than holding out for the figures achieved at recent peaks.
The webinar addressed questions around whether long-term leasing now represents a more stable strategy than short-term rental. The panel’s view was clear: many owners are finding long-term contracts more reliable in the current climate, particularly as occupancy assumptions in the holiday-letting segment become harder to justify.
The increase in rental supply, driven in part by landlords moving out of the short-term market, is adding to the stock available to long-term tenants — a dynamic that gives occupiers more options and more leverage in negotiations.
Landlords urged to price realistically as Dubai rental market become more competitive
Betterhomes encouraged landlords to view today’s conditions in the context of the gains accumulated over recent years. The firm said a practical approach to renewals, renegotiation requests and vacancy risk is now the priority.
The broader assessment from the panel was that Dubai’s leasing market is softening in places but has not broken down. Demand remains present, tenant enquiries are recovering week on week, and the market continues to function.
The distinction, the panel said, lies in approach: landlords who price realistically and present their properties well are continuing to secure tenants.
