Dubai’s rental market posts strong growth amid real estate boom in 2025

Dubai’s rental sector posted robust growth in 2025, supported by rising demand, a wide range of housing options, and clear regulatory frameworks, WAM reported, citing data from the Dubai Land Department (DLD).

Registered tenancy contracts grew 6% in volume and 17% in value, reaching 1.38 million agreements worth AED126.4 billion. New contracts rose 10% to over 513,000, while renewals increased 3% to more than 514,000, signaling both market stability and high tenant satisfaction.

The broader real estate market also recorded robust activity. A total of 124 projects were completed in 2025, up 7%, valued at AED27.5 billion, a 23% increase over the previous year.

Meanwhile, 937 projects remain under construction, a 25% jump, highlighting developers’ confidence in Dubai’s market. Sales also surged, with 147,500 units sold, totaling AED280 billion - a 30% increase in value. Notably, villa sales saw a 12% rise in value despite a small decline in volume, reflecting a shift toward higher-value properties.

Regulatory expansion reinforced the sector’s growth. Dubai saw 4,122 new real estate offices registered, doubling the total to 10,182, while 14,364 licenses were issued across brokerage, property management, development, consultancy, and other services.

Sales and purchase brokerage led licensing activity with 6,009 licenses, followed by 3,513 for leasing brokerage and 2,126 for transaction follow-ups. Officials said this diversity supports efficiency, transparency, and a flexible business environment.

The strong rental and real estate performance aligns with Dubai’s Economic Agenda D33 and the Real Estate Sector Strategy 2033, aimed at creating a sustainable, balanced market that promotes both ownership and renting, while enhancing customer experience.

Experts noted that the rental sector acts as a gateway to homeownership, a pillar for social and economic stability, and a key contributor to Dubai’s resilient real estate ecosystem.

DLD officials emphasized that the sector’s growth demonstrates institutional maturity, operational efficiency, and long-term sustainability, reinforcing investor confidence and positioning Dubai as a leading global destination to live, work, and invest.