Dubai’s rental market showed impressive growth in 2025, reflecting the city’s booming population and vibrant property sector. According to the Dubai Land Department, a record 1.4 million tenancy contracts were registered last year—a 6% increase from 2024. The combined value of these agreements jumped 17% to AED126 billion ($34.3 billion), driven by rising rental rates and high demand for homes and commercial space.
New lease agreements topped 513,000 in 2025, up 10% from the previous year, while renewals also saw a modest rise, reaching over 514,000. This signals not only strong tenant retention but also a steady influx of new residents as Dubai’s appeal continues to grow.
The city’s population surge has played a major role in fueling demand. In 2025, Dubai’s population crossed the 4 million mark—double what it was in 2011—and is on track to hit 5 million by 2029 or 2030 if current growth rates hold.
On the supply side, developers have been busy keeping up. Last year saw the completion of 124 real estate projects, a 7% increase from 2024, with a total value of AED28 billion. Construction activity also ramped up, with 937 new projects in the pipeline—a 25% jump year-on-year—pointing to a strong future supply.
Dubai’s property ecosystem is expanding alongside demand. The city added 4,122 new real estate offices in 2025—more than double the previous year—bringing the total to over 10,000. More than 14,000 new real estate licences were issued, reflecting the sector’s vitality.
While rental defaults did double last year, officials say most late payments were due to short-term cash flow issues, such as job changes, rather than deeper financial trouble. This suggests that Dubai’s rental market remains resilient as the city’s population and property sector continue their rapid expansion.
