Rents Surge in Dubai’s Property Market, Except These Neighbourhoods

The sustained growth is underpinned by strong demand, limited supply in key areas, and growing investor interest. However, despite the broader upward trend, CBRE’s latest market snapshot highlights that a handful of neighbourhoods have bucked the trend, with rental prices either softening or stabilising.

Among apartments, Business Bay, Jumeirah Village Circle (JVC), and Dubai Sports City were among the few areas to register year-on-year rental declines. Business Bay saw a marginal drop of 0.3%, while JVC experienced a decrease of 0.4%. Dubai Sports City recorded a more noticeable decline of 4.3%. For villas, Jumeirah Golf Estates saw rents fall by 1.8% year-on-year. The reasons vary from shifting tenant demand to greater availability in specific sub-markets. In some cases, properties with older specifications or less competitive amenities have struggled to match the sharp rises seen elsewhere in the emirate.

Elsewhere, rents have soared. The highest average annual apartment rents were found in Palm Jumeirah (AED 265,876), Downtown Dubai (AED 214,021), and Dubai Marina (AED 175,940). For villas, Palm Jumeirah again topped the list with an average of AED 1,218,318, followed by Al Barari (AED 1,074,388) and Emirates Hills (AED 1,037,268). Despite concerns around affordability, the premium segment of the market continues to perform strongly. Prime locations, particularly those offering waterfront views or luxury lifestyle amenities, remain in high demand, often attracting both long-term residents and international renters.

Although rents continue to rise across the majority of areas, the pace of growth has slowed compared to the previous year. This moderation is expected as the market begins to normalise following a post-pandemic surge. CBRE noted that tenant preferences are evolving, with increasing focus on value, quality, and community features. Despite isolated price drops in select neighbourhoods, the broader trend still points to a tight rental market, with landlords in prime areas retaining the upper hand. Industry experts expect further price corrections in some mid-market communities, while luxury and waterfront developments are likely to remain resilient.

As Dubai continues to attract new residents and investors, rental performance will remain closely tied to supply pipelines, infrastructure upgrades, and shifts in tenant demand.