Properties to Rent in Dubai: 2025 Market Insights

Rental Market Snapshot

As of July 2025, average apartment rent in Dubai hit AED 103,000/year (+21.7% YoY), while villa rents averaged AED 328,000/year (+19.6%) .

Over the past year, rents in prime communities such as JVC, Marina, Business Bay, and Downtown rose between 20–27% .

Demand Drivers & Population Growth

Dubai’s population reached ≈ 3.75 million in June 2025 and is expected to cross 4 million by late 2026, fueling rental demand

Rental price increases have outpaced salary growth—average rent hikes of 16–20% YoY, while wages remain stagnant .

Rental Yields & Investor Outlook

As of mid-2025 average gross rental yield stands at 6.9% overall: 7.3% for apartments, 5.0% for villas

High-yield areas include International City (8–9%), JVC (7–8%), Dubai Marina (~6–7%), Silicon Oasis (~7.5–8.5%) .

Hot Rental Locations & Trends

Premium areas (Dubai Marina, Downtown, Palm Jumeirah) saw long-term rent growth up to 12–15%, with short-term rental increases of ~18% .

Family neighborhoods like Arabian Ranches and Dubai Hills saw villa rent increases of 10–12% .

Emerging affordable markets like JVC, Dubai South, and Al Furjan offer lower rents and steady yields of 6–8%, with 1BR rents ranging around AED 50,000–60,000/yr .

Supply & Regulations To Watch

Despite delivery of 39,000+ units in H1 2025, supply is not catching up with demand in central zones, sustaining upward pressure on rents .

Over 200,000 additional units due by 2026 may gradually stabilize rent growth through 2026; however, well-located and high-quality units should remain resilient .

Regulatory tools like Ejari (mandatory tenancy registration) and the digital Rental Index Calculator by RERA now enhance transparency and curb unjust rent hikes

Summary for Renters & Investors

For Renters

Act fast in 2025 — central areas are getting more expensive year-over-year.

Consider expanding to emerging neighborhoods for value.

Budget for upfront costs: security deposit (~5%), agent fees (~5–6%), DEWA, Ejari.

For Investors

Look for mid-market units (studio/1BR) in high-yield zones like JVC, Intl. City, DSO.

Leverage negotiation tools (Ejari, Rental Index) to secure fair rental conditions.

Yields outperform global cities—> expect 6–9% gross returns on apartments.

FAQs – Renting Property in Dubai

Rents have risen between 16–22% YoY, depending on location and property type.

In 2025: AED 70,000–110,000/year in central areas; AED 50,000–60,000 in emerging communities like JVC or Dubai South .

Top yields are in International City (8–9%), JVC (7–8%), DSO (7.5–8.5%), and Marina/Downtown (6–7%) .

While supply is increasing, rents are still trending upward—especially in premium locations. More stabilization is expected in 2026 .

Dubai uses Ejari registration and a RERA Rental Index to regulate and control rent increases—ensuring fair pricing during negotiations and renewals.

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