Dubai’s rental market moved sharply against the grain in Q2 2026. While the sales market cooled, tenant enquiries rose 20 per cent year-on-year and 18 per cent quarter-on-quarter, according to betterhomes’ latest residential market report.
Within the quarter, enquiries climbed more than 60 per cent between April and June, including a month-on-month jump of over 20 per cent in June alone.
“Landlords are operating in a far more competitive environment than they were six months ago. With further supply expected over the remainder of the year, realistic pricing and quality will only become more important in securing tenants,” Rupert Simmonds, Director of Leasing at betterhomes said in a statement.
The driver wasn’t new arrivals. Existing Dubai residents accounted for much of the activity, upgrading, relocating, or trading sideways in search of better value. Some prospective buyers also chose to extend their rental arrangements rather than commit to a purchase in a softening sales environment.
At the same time, tenants found themselves with more options. New leasing listings eased just 8 per cent quarter-on-quarter, even as available stock rose across many communities, giving renters more choice and meaningful negotiating power.
On pricing, DLD transaction data shows apartment rents averaged AED72,681, up 2.9 per cent year-on-year. Villa rents rose 5.7 per cent to AED281,633.
Overall, average rents were broadly flat quarter-on-quarter but still 3.1 per cent above Q2 2025. The gap between renewal pricing, still anchored to the RERA Rental Index, and newly agreed rents is widening, with new-let prices coming under pressure in a growing number of communities.
Payment structures also shifted. Single- and four-cheque arrangements both lost market share, while three-, six- and twelve-cheque plans gained ground, a trend betterhomes attributes to the growing uptake of Flexi Rent, which gives tenants instalment-based payment options in place of the traditional lump-sum model.
