Dubai’s rental market hit a record high in June, fäm Properties reports, as property sales climbed across all segments.
Record‑high rental activity in June
According to a market analysis by fäm Properties, 40,022 rental contracts were registered in June – the highest monthly total ever recorded. New contracts surged 48.6% year‑on‑year to 19,245, while renewed contracts climbed 28.5% to 20,777. The surge reflects a dual‑track demand: fresh tenants entering the market and existing residents extending their stays.
Firas Al Msaddi, CEO of fäm Properties, emphasized that the growth is not merely tenants shuffling between units. “It would be a mistake to reduce it to tenants simply moving between units. What stands out is that renewals are equally robust. We are seeing new demand entering the market and existing demand deepening at the same time,” he said.
Al Msaddi attributed the surge to renewed confidence following months of regional tension, noting that pricing had also turned in tenants' favour amid a wave of newly handed‑over projects. “What they witnessed was a testament to this country’s resilience, agility, and wisdom, and that brought confidence back stronger than before,” he explained.
Shift towards long‑term ultra‑luxury leases
The analysis also highlighted a growing appetite for long‑term leasing, especially in the ultra‑luxury segment. Historically, annual leasing contracts were largely confined to the affordable and mid‑market segments, but they are now moving firmly into the ultra‑luxury bracket. Serious long‑term tenants are willing to pay top‑tier rents for these units, prompting landlords to hold and lease rather than sell.
Al Msaddi noted that owners of high‑end villas are now preferring to hold and rent out their properties rather than sell them. In the past two months, fäm Properties leased two villas in Al Barari on two‑year terms – one for Dh14 million total (Dh7 million per year) and another for Dh7.2 million total (Dh3.6 million per year).
“So, this demand is not confined to the affordable segment. The most distinguished signal in the market right now is demand for long‑term annual leases on ultra‑luxury property,” Al Msaddi added, underscoring the shift toward longer tenancy agreements in the high‑end market.
The trend suggests owners are betting on the market’s long‑term trajectory, choosing to retain assets that were originally built for sale. “The owners of these villas, assets originally built for sale, not for rent, believe in the long‑term trajectory of this market. That belief is making them reconsider,” he said.
Frequently asked questions
What is the current trend in Dubai's rental market?
Dubai's rental market has hit a record high, with 40,022 rental contracts registered in June. New leases jumped 48.6% and renewals rose 28.5%, indicating strong demand across all segments.
How many rental contracts were registered in Dubai in June?
A record 40,022 rental contracts were registered in Dubai in June, according to fäm Properties.
What is driving the growth in Dubai's rental market?
The growth is driven by renewed confidence following months of regional tension, with tenants entering the market and existing residents extending their stays.
Are long-term leases becoming more popular in Dubai?
Yes, long-term leasing is expanding, especially in the ultra‑luxury segment, with serious tenants willing to pay top‑tier rents for these units.
Why are villa owners in Dubai preferring to rent out their properties?
Villa owners are now preferring to hold and rent out their properties rather than sell them, as serious long‑term tenants are willing to pay top‑tier rents.
