Dubai rental market hits 1.38 million contracts in 2025 as value rises 17%

Units sold during the year reached 147,500, a 25 per cent increase in volume, with the value of transactions reaching AED280 billion, a 30 per cent rise

Staff Writer
Dubai
Image: Dubai Media Office

Article summary

AI Generated

Dubai's rental market saw significant growth in 2025, with a 6% rise in tenancy contracts to 1.38 million, valued at AED126.4 billion. New contracts increased by 10%, while renewals grew by 3%. The real estate sector also experienced a surge in sales, reaching AED280 billion, with a 25% jump in units sold. Development projects and licensing also saw notable increases, reflecting a maturing and expanding market.

Key points

  • Dubai's rental market saw 1.38 million contracts in 2025, a 6% volume rise.
  • New contracts increased by 10%, while renewals grew 3%, showing tenant stability.
  • AED280 billion in sales were recorded, with units sold up 25%.

Dubai’s rental sector recorded growth in 2025, with data from Dubai Land Department showing that tenancy contracts reached 1.38 million, a 6 per cent increase in volume and a 17 per cent increase in value compared to 2024, bringing the total to AED126.4 billion.

The number of contracts registered in 2025 broke down into two categories. Contracts classified as new rose to more than 513,000, a 10 per cent increase year on year.

Contracts classified as renewals reached more than 514,000, a 3 per cent increase, pointing to a level of continuity among tenants already residing in the emirate, according to a report by the Dubai Media Office.

Dubai real estate sector posts AED280 billion in sales as units sold jump 25%

Dubai Land Department said the performance of the sector aligns with the objectives of the Dubai Economic Agenda D33 and the Dubai Real Estate Sector Strategy 2033, both of which place emphasis on balance between ownership and renting, frameworks for regulation, and conditions that support life, work, and investment in the city.

On the development side, 2025 saw 124 projects reach completion, a 7 per cent increase, with a value of AED27.5 billion, representing a 23 per cent rise. The number of projects under construction grew by 25 per cent to 937.

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Units sold during the year reached 147,500, a 25 per cent increase in volume, with the value of transactions reaching AED280 billion, a 30 per cent rise.

Villas recorded a 12 per cent increase in value despite a fall in the number of units sold, pointing to a shift in the direction of purchases toward products at the top end of the market.

At the level of regulation, 4,122 offices were registered during 2025, a 102 per cent increase, bringing the number of offices in operation across Dubai to 10,182.

A total of 14,364 licences were issued across a range of activities. Of these, 6,009 covered sales and purchase brokerage, 3,513 covered leasing brokerage, 2,126 were issued for transaction follow-up services, 714 for buying and selling land and properties, and 525 for development. The remainder covered property supervision, mortgage brokerage, management of properties, consultancy, and other services.

Dubai Land Department said the expansion in licensing reflects conditions in which demand for brokerage, management, development, and consultancy services is growing within a framework governed by standards and oversight.

The department said these indicators reflect a level of maturity in the market and a commitment to the development of frameworks, the improvement of services, and the support of all parties within the sector, with the aim of achieving balance and stability in the years ahead.

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