Dubai rents in Q2 2026: down 6.2% in a quarter as supply arrives — CBRE review

Average residential rents in Dubai fell 6.2% in the second quarter of 2026 from the previous quarter and 2.6% from a year earlier, according to CBRE's UAE market review. Sale prices stayed 1.9% above last year's level, while transaction volumes dropped 29% in the quarter.

How much have Dubai rents fallen?

By 6.2% in three months — after several years of growth, rents have turned. The annual decline is milder at 2.6%: rents were at their peak only recently and the pullback has just begun.

Measure, Q2 2026	Change
Residential rents, quarter on quarter	−6.2%
Residential rents, year on year	−2.6%
Residential sale prices, year on year	+1.9%
Transaction volumes, quarter	−29%
Office rents, year on year	+13%

Why are rents coming down?

New supply. CBRE estimates that around 18 000 homes were completed in Dubai in the first half of 2026. Tenants gained choice; landlords gained competitors in the same building and on the same street.

Demand has not disappeared — it has become selective. Where many similar flats come to market at once, the landlord willing to let fastest sets the rent. Where little is being built, rents hold.

Where is it easier for a tenant to negotiate?

Where most new buildings complete: mass-market districts such as Jumeirah Village Circle and the towers of Business Bay. The official rental index has also recorded falls in some villa communities.

The index matters beyond statistics: it decides whether a landlord may raise the rent at renewal. A tenant should check it before signing.

What prices and transactions are doing

Sale prices have not followed rents yet: up 1.9% on the year while transactions fell 29%. That is a market where sellers still hold their asking price and buyers are no longer in a hurry. Negotiation usually comes next.

On how much housing was promised and how much was built, see Dubai housing supply: forecast against deliveries. Completions run below forecasts every year, so a collapse in rents from a "handover wave" is unlikely.

Offices and Abu Dhabi tell a different story

Dubai office rents rose 13% over the year and prime rents 16%, with occupancy around 94%. Abu Dhabi office occupancy reached 96%, and CBRE describes the capital's residential market as outperforming Dubai's.

For an investor that is a reason to look beyond housing: commercial property is in a different phase of the cycle.

What should landlords and tenants do?

• Tenants: before renewal, check the index and the listings in your own building. A cut of 5–7% at re-signing is realistic now.
• Landlords: keeping a good tenant is cheaper than finding a new one — a month of vacancy costs 8% of annual income.
• Buy-to-let buyers: calculate yield on today's rents, not the 2025 peak.

Frequently asked questions

Are rents falling in Dubai in 2026?

Yes. CBRE reports average residential rents down 6.2% quarter on quarter and 2.6% year on year in Q2 2026.

How many homes were completed in Dubai in the first half of 2026?

Around 18 000, by CBRE's estimate. That supply is the main reason rents eased.

Did Dubai home prices rise over the year?

CBRE puts sale prices 1.9% higher in Q2 2026 than a year earlier, with transaction volumes down 29%.

What is happening to office rents in Dubai?

They are rising: up 13% over the year and 16% for prime space, with occupancy around 94%.

Letting a flat or buying one to let? Test your numbers against the district — start with our profile of Jumeirah Village Circle.