Dubai Rents Transacting 12.5% Below March 2025 Levels, Says Betterhomes

Dubai’s leasing market is entering a more competitive phase, with landlords facing a more value-driven environment than they have in recent years.

The insight was shared during betterhomes’ second Dubai property market webinar, a follow-up Q&A session focused on the market’s most pressing client questions, where leasing emerged as a key area of concern. Data presented during the webinar showed:

• Transactions remained 12.5% below March 2025 levels
• Enquiry activity had recovered to around 30% of typical levels after the early-month dip
• Rental supply is rising as more landlords move out of the short-term rental market

The discussion focused on whether rents are falling, how landlords should respond to renegotiation requests, and whether long-term leasing now offers a more stable strategy than short-term rental. The panel said rental pricing has already softened, reflecting a more value-driven market after consecutive years of aggressive growth.

Rupert Simmonds, Director of Leasing at betterhomes, said:
“Leasing is need-driven, not sentiment-driven. While enquiries initially dropped at the start of the month, activity gradually regained momentum, recovering to around 30% of typical levels. Tenants are more price-sensitive and are taking the time to compare options. Landlords who price correctly and present their properties well are securing tenants, but the market has become more competitive.”

The webinar also pointed to a clear shift in enquiry patterns. As discussed during the session, the level of new rental enquiries per listing has fallen significantly compared to a year ago, reinforcing the view that landlords now need to price more realistically in order to compete. As stated during the webinar, “We are undoubtedly in a price-sensitive market.”

betterhomes encouraged landlords to assess today’s market in the context of the strong gains made over recent years, while taking a practical and commercially minded approach to renewals, negotiations and vacancy risk. The panel also noted that many owners are now finding long-term contracts more stable than short-term rental in the current environment, particularly as holiday-letting occupancy assumptions become harder to justify.

The broader takeaway was that Dubai’s leasing market is softening in places, but not breaking. Demand remains active, tenant enquiries are improving week on week, and success in this phase will depend less on holding out for yesterday’s peak and more on realistic pricing, strong advice and commercially sound decisions.