New leases, not renewals, drove growth in Dubai's rental market in January–September 2026, according to FAM Real Estate, with one-bedroom apartments taking 43% of new contracts. New-lease rates on four- and five-bedroom villas fell about 11% year on year while renewal rates kept rising.
The numbers
What happened
FAM Real Estate analyzed Dubai rental contracts for January–September 2026. The five largest areas by contract count registered about 114,300 leases, led by Al Warsan First, Jebel Ali First and Al Barsha South Fourth, which the source identifies as Jumeirah Village Circle. Business Bay and Dubai Marina were named as the most visible residential destinations, supported by their location, infrastructure and transport links.
Growth came from new contracts rather than renewals, as tenants moved into newly handed-over buildings. Al Yufrah 1 recorded a 144% year-on-year rise in contracts after roughly 1,290 units were delivered since the start of 2025. Al Hebiah Second led newer communities at 47.6%. New contracts rose 107% in Al Hebiah 2 and 73% in Wadi Al Safa 3, while Umm Suqeim Third registered a 48% increase in contracts.
Average new-lease rents were AED 45,000 ($12,000) for a studio, AED 70,000 ($19,000) for a one-bedroom, AED 110,000 ($30,000) for a two-bedroom, AED 180,000 ($49,000) for a three-bedroom apartment and AED 270,000 ($74,000) for a four-bedroom villa. New-lease rates rose 2–3% for studios and one-bedrooms, were unchanged for two-bedrooms, and fell 5% for three-bedrooms and about 11% for four- and five-bedroom villas. Renewal rates rose 4–14%. Studios to two-bedrooms made up almost nine in ten new contracts.
FAM Real Estate CEO Firas Al Masdi attributed the growth to supply and price: units bought off-plan in 2022 and 2023 are now complete, and investors have started renting them out. The methodology and underlying data source were not disclosed.
What it means for buyers
Questions and answers
Which areas lead Dubai rental contracts in 2026?
By contract count, Al Warsan First, Jebel Ali First and Al Barsha South Fourth lead, per FAM Real Estate. The five largest areas registered about 114,300 contracts in January–September 2026.
Are new-lease rates rising more slowly than renewals in Dubai?
Yes. New-lease rates rose 2–3% for studios and one-bedrooms and fell for larger formats (three-bedrooms −5%, villas about −11%), while renewal rates rose 4–14%. The data compare rate changes, not absolute rents.
Reviewed by: Alexander Zelinskiy, RERA Broker #60167 · Source: Emirates 24|7
Prepared by the Insight City newsroom with AI assistance from the cited source, then checked and approved by an editor before publication. * Content is for reference only and is not investment, tax or legal advice.
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