Dubai's Rental Market Insights For H1 2025: Trends In Long-Term And Short-Term Rentals

Bayut and dubizzle, the UAE's top property platforms, have shared their latest insights on Dubai's rental market for the first half of 2025. The analysis indicates a stabilising trend in long-term rentals, while short-term rentals maintain steady demand. As new properties become available, rental pressures are easing, providing tenants with more options and flexibility.

Dubai's short-term rental market is thriving across all price ranges. Demand remains high for both monthly and daily rentals, especially in centrally located areas that offer a vibrant lifestyle.

Trends in Long-Term Rentals

Six months after introducing the Smart Rental Index, Bayut reports promising stability in long-term rental prices. Although some areas have seen growth, the rate of change has become more consistent. Affordable apartment rents rose by 7%, but Bur Dubai and Deira saw decreases of 6.19%. Mid-range apartments experienced increases between 1% and 6% annually.

Luxury apartment rents generally fell by 1% to 5%, though Dubai Marina and Downtown Dubai reported up to a 3% rise. Affordable villa rents surged by up to 9% in key districts. Mid-tier villas saw rent hikes up to 7%, except for certain units in Al Furjan and JVC, which decreased by up to 13%.

Short-Term Rentals: Consistent Demand

In the luxury segment for monthly apartment rentals, Dubai Marina, Downtown Dubai, and Meydan City were top choices with rents between AED 7.18K and AED 16.31K per month. Palm Jumeirah and Dubai Hills Estate remained popular for villas, with monthly rents ranging from AED 93.33K to AED 171.43K.

Jumeirah Village Circle (JVC) led the mid-tier segment for monthly apartment rentals at an average of AED 7.09K. Business Bay and Al Barsha also attracted renters with studio to two-bedroom layouts starting at AED 4.63K.

Daily Short-Term Rentals

For daily luxury apartment rentals, Downtown Dubai, Jumeirah Beach Residence (JBR), and Dubai Marina were preferred due to their prime locations and amenities. Daily rents ranged from AED 516 to AED 762. Palm Jumeirah continued to lead in villa rentals with daily rates reaching AED 6.96K.

Business Bay, JVC, and Al Barsha were sought-after mid-tier areas with daily apartment rents between AED 384 and AED 472. JVC noted a 5.6% increase in rates averaging AED 415 per day.

Affordable Rental Options

Budget-conscious renters favoured International City, Bur Dubai, and Deira for monthly apartments with rents from AED 3.08K to AED 12.99K. DAMAC Hills 2 remained popular for affordable villas priced between AED 12.96K and AED 15.75K per month.

For budget-friendly daily rentals, Bur Dubai saw a slight dip of 5.34% but remained popular alongside Deira and Dubai Silicon Oasis (DSO), where daily rates ranged from AED 206 to AED 269.

"Dubai's rental market is starting to stabilise after a period of rapid growth," said Haider Ali Khan, CEO of Bayut and dubizzle Group MENA Board Member of the Dubai Chamber of Digital Economy.

Khan added that over "72,000 new units expected this year" will ease rent pressures offering tenants better choices as they consider homeownership amid levelling prices.