Q3 2025 Dubai Rental Market Report

Dubai rental market trends in Q3 2025 show a welcome cooling of rents in several popular areas, easing pressure on tenants. According to Bayut’s Dubai Property Market Report for Q3 2025, rental costs for affordable and mid-tier apartments declined by up to 5% in areas like Bur Dubai, Arjan, and Dubai Silicon Oasis. This shift is driven by increased supply and more deliberate, value-focused tenant demand.

Apartments are becoming more affordable with new handovers helping to balance prices. Bayut’s CEO, Haider Ali Khan, noted the market’s growing maturity as consistent demand meets diverse housing options. Renters now prioritise space, amenities, and long-term value over location alone, seizing opportunities to upgrade, such as moving from studios to one-bedroom units.

Villa rentals, however, did not mirror this trend uniformly. Some communities like Arabian Ranches 3 saw steep rent increases on family-sized villas due to demand and new handovers, while more affordable areas like DAMAC Hills 2 and Dubai South remained steady.

Value remains strong in community-focused areas such as International City and Discovery Gardens, which deliver both affordability and high rental yields — appealing to tenants and investors alike.

Meanwhile, property sales remain robust with high demand in Jumeirah Village Circle, Business Bay, and Dubai Marina driven by rental demand and price stability. Overall, Q3 2025 marks a shift toward stable, selective growth focusing on mid- to upper-mid-tier apartments, reflecting balanced market dynamics.

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