For the first time in several years, tenants in Dubai have real negotiating power.
According to Savills' report for the third quarter of 2026, apartment rents in a number of popular communities fell by more than 10% year-on-year. The main reason is a large volume of newly completed homes, which gives tenants far more choice.
Where rents fell the most.
Among apartments, the biggest drops were in Dubai Marina (−12.8%), Business Bay (−12.2%) and Jumeirah Village Circle (−10.4%). Al Furjan (−7.5%), DIFC (−7.3%) and Majan (−5.1%) also became cheaper. In the villa and townhouse segment, Arabian Ranches 3 (−15%) and Damac Lagoons (−13.4%) saw the sharpest corrections.
Early signs of stabilisation.
Savills notes that quarterly figures already suggest the market is levelling out, although the picture varies by location. The number of rental contracts rose 16% quarter-on-quarter to 181,900, and the share of new leases increased to 44% — people are actively moving to new homes on better terms.
What this means for tenants.
Now is a good time to review your current lease, compare offers in neighbouring communities and negotiate the price, number of cheques or extra conditions with the landlord.
And for investors?
Lower rents slightly reduce yields on new purchases, but they also bring in long-term tenants and keep occupancy high. Location and property quality become even more important. Empire City will help you calculate the real return on a specific unit before you buy.
Based on Savills' Q3 2026 Dubai residential report, as reported by Khaleej Times on 13 October 2026.
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