Dubai: 21.4 per cent of Q3 2026 rental deals came with a lower rent

Roughly one Dubai tenant in five now pays less than under the previous contract, according to consultancy Cavendish Maxwell. Khaleej Times reported on 2 November 2026 that 21.4 per cent of Q3 rental deals showed a cut, compared with 4.8 per cent in Q1.

Another 38.7 per cent were renewed at an unchanged rent. The share of deals with a higher rent fell from 59.4 per cent in Q1 to 40 per cent in Q3. The consultancy says landlords have less pricing power and tenants have more room to negotiate.

The average rent in September was Dh77.3 per sq ft a year, 5.5 per cent above a year earlier. In September 2025 the annual rise was 11.5 per cent. More than 172,000 contracts were registered in Q3: 94,300 renewals (down 10.6 per cent) and 77,700 new leases (up 18.2 per cent).

Supply and sales

About 38,000 homes were completed from January to September, 41.4 per cent more than a year earlier, including about 12,400 in Q3. A further 24,400 are scheduled for the rest of 2026, though the consultancy expects 7,300 to 12,200 to materialise. It lists 136,100 units for 2027 and 155,700 for 2028.

Q3 home sales totalled Dh72.6 billion from 33,900 deals. Value is down 47.6 per cent and volume down 38.6 per cent on a year earlier. The average price was Dh1,644 per sq ft in September, 2.2 per cent lower year-on-year. Off-plan made up 72.2 per cent of deals.

Cavendish Maxwell expects prices to stay under pressure in 2027 and rent growth to slow further, especially for apartments. Ronan Arthur, head of residential valuation, said regional tensions "continue to affect investor confidence and buyer sentiment".

For tenants, the figures point to more room to negotiate at renewal or on a new lease. Current listings are in the long-term rental catalog.