Dubai’s rental market has entered a more balanced and mature phase during the first half of 2026, according to data released by DXB Interact, signaling a shift away from the rapid rental increases seen in recent years.

The platform reported that Ejari contract data continues to show strong market activity, while some mid-range apartment and villa segments have started to experience selective price moderation. The change does not indicate weakening demand but rather reflects a healthier and more sustainable pricing environment. Data for the second quarter of 2026 showed that Jumeirah Beach Residence (JBR) recorded the highest average rents for both studio apartments and one-bedroom units among 12 major residential areas in Dubai. Average annual rents in JBR reached AED 70,000 for studio apartments and AED 102,500 for one-bedroom units. Meanwhile, International City 1 remained the most affordable location in both categories, with average rents of AED 32,000 and AED 44,000 respectively. For two-bedroom apartments, Business Bay ranked as the most expensive area, with an average annual rent of AED 130,000. Across the 12 monitored districts, average annual rents reached AED 50,880 for studios, AED 70,080 for one-bedroom apartments, and AED 98,410 for two-bedroom units. DXB Interact founder Fatih Al Mesaddi stated that the market is undergoing a healthy rebalancing process, with rental prices becoming increasingly linked to property quality, location, and actual supply levels rather than broad market-wide increases. He added that the delivery of more than 17,000 new residential units since the beginning of 2026 has helped improve the balance between supply and demand while supporting Dubai’s continued population and business growth. According to Al Mesaddi, the most likely scenario for the third quarter of 2026 is continued market stability, supported by strong housing demand and only limited price moderation in selected property segments. The report also revealed that Dubai recorded approximately 146,000 rental contracts during the first half of 2026, approaching 2025 levels and exceeding the figures recorded during the same period in 2023 and 2024, highlighting the continued strength of the emirate’s rental market