The annualised value of new luxury villa rental contracts in Dubai rose 27% year-on-year to AED509 million in the first five months of 2026, up from AED400 million in the same period last year, according to a market analysis from fäm Properties using DXBinteract data.
Renewed tenancy contracts for villas priced above AED1 million also climbed, rising 28% to AED114 million from AED89 million over the same period. Transaction volumes held broadly steady, meaning the value increase was driven by a shift toward higher price brackets rather than more deals overall.
“Demand at the luxury and ultra-luxury end of the rental market has remained resilient over the last few months. Tenants at this level are not only choosing Dubai, they are prepared to pay significantly more to live here, and that sends a clear signal about the sustained confidence in this market,” Firas Al Msaddi, CEO of fäm Properties said in a statement.
The AED2–3 million range saw the sharpest mid-tier movement, with new contracts up 21% and renewals up 17%. At the top end of the market, nine new annual tenancy contracts were recorded in the AED5–10 million band between January and May, with a further seven exceeding AED10 million. Across all brackets, 67.3% of contracts signed during the period ran for 12 months.
Palm Jumeirah led both transaction volumes and total rental value. New contracts above AED1 million on the island reached AED113 million, up 14% from AED99 million in 2025, while renewals rose 15% to AED37 million. By volume, Palm Jumeirah recorded 36 new contracts and 16 renewals above AED1 million, ahead of Dubai Hills Estate at 35 new contracts and District One Mohammed Bin Rashid City at 22.
Dubai Hills Estate posted the strongest growth in annualised new contract value, up 37% to AED87 million from AED63 million. New agreements accounted for the majority of activity across all three communities: 69% at Palm Jumeirah, 85% at Dubai Hills Estate, and 63% at District One MBR City.
