While Dubai’s sales market cooled, leasing told the opposite story, and betterhomes data shows landlords now need sharper pricing to keep up.
As Dubai’s sales market took its first real breather in years, the rental market did the opposite: betterhomes’ Q2 2026 Dubai residential market report shows tenant enquiries rose 20% year-on-year and 18% quarter-on-quarter, with momentum building through the quarter, enquiries climbed more than 60% between April and June alone, including a month-on-month jump of over 20% in June.
Tenant enquiries rocket 60% since April as Dubai’s own residents drive the rental boom
The surge wasn’t driven by new arrivals. It came from Dubai’s existing residents moving more: tenants upgraded, relocated or locked in better value, while some would-be buyers chose to keep renting rather than commit to a purchase. New leasing listings eased just 8% quarter-on-quarter even as available stock rose sharply across many communities, handing tenants more choice and stronger negotiating power than they’ve had in years.
Rents climb 3% a year, but new leases tell a very different story
Across DLD transactions, apartment rents averaged AED72,681, up 2.9% year-on-year, while villa rents rose 5.7% to AED281,633. Overall, average rents were broadly flat quarter-on-quarter but still 3.1% higher than Q2 2025, even as newly agreed rents came under pressure in a growing number of communities, a sign that renewal pricing (still backed by the RERA Rental Index) and new-let pricing are moving in different directions.
Tenants trade lump-sum cheques for flexibility as Flexi Rent reshapes the market
Tenant payment behaviour shifted too. Single- and four-cheque payments both lost share, while three-, six- and twelve-cheque plans all gained ground, a direct result of Flexi Rent giving tenants more flexible, instalment-based options.
“Landlords are operating in a far more competitive environment than they were six months ago,” said Rupert Simmonds, Director of Leasing at betterhomes. “With further supply expected over the remainder of the year, realistic pricing and quality will only become more important in securing tenants.
About betterhomes:
betterhomes is Dubai’s longest-standing independent real estate brokerage, part of Cencorp, a group spanning sixteen companies across residential, commercial and professional real estate services. Since 1986, betterhomes has supported buyers, sellers, landlords and tenants across Dubai with data-led market insight and end-to-end property services.
