Dubai’s residential rental market recorded strong demand in the second quarter of 2026, driven mainly by existing residents looking to upgrade, relocate or secure better value homes, according to Betterhomes’ latest market report.
The report said tenant enquiries increased by 20 per cent year-on-year and 18 per cent compared with the previous quarter. Enquiries also rose by more than 60 per cent between April and June, including a month-on-month increase of more than 20 per cent in June.
Rental demand
According to Betterhomes, the increase in activity came largely from residents already living in Dubai rather than new arrivals. Many tenants moved to larger or better-located homes, while some potential buyers chose to continue renting instead of purchasing a property.
New leasing listings fell by 8 per cent quarter-on-quarter, although available rental stock increased across several communities, giving tenants a wider choice of homes.
Rent trends
Average apartment rents reached Dhs72,681 during the quarter, up 2.9 per cent from a year earlier, while villa rents increased 5.7 per cent to Dhs281,633.
Overall rental prices remained largely unchanged from the previous quarter but were 3.1 per cent higher than the same period last year.
The report noted that while lease renewal prices continued to be supported by the RERA Rental Index, rents agreed for new leases came under pressure in a growing number of communities.
Flexible payments
The report also highlighted changing payment preferences among tenants.
More renters opted for three, six or 12-cheque payment plans, while the use of single-cheque and four-cheque payments declined. Betterhomes attributed the shift to the growing use of Flexi Rent options, which allow tenants to spread rental payments over instalments.
Rupert Simmonds, Director of Leasing at Betterhomes, said: “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.”
