Why Rents Aren’t Going Down Anytime Soon in Dubai—What Tenants and Investors Should Know

Despite Dubai’s impressive construction pipeline, tenants hoping for relief in rental prices may need to adjust their expectations. The reality? Dubai’s rental prices are unlikely to decrease anytime soon, despite the 283,928 units currently under development. Why? According to Firas Al Msaddi, CEO of fäm Properties, most of these projects won't be completed until at least 2028, meaning any substantial impact on the rental market is years away.

“Looking at the upcoming supply, it’s clear that much of it is far from delivery,” Al Msaddi explains. “Of these nearly 284,000 units, around 71%—about 187,116 homes—are only 0% to 20% complete, while 12% are between 21% and 40% completion. In short, over 200,000 of these units are in the very early stages and won’t be ready for several years.”

This timeline indicates that for the next few years, the market will not experience a significant increase in supply, which is insufficient to reduce prices or alleviate rental pressure.

Key Supply Stats and What They Mean for the Market

The breakdown of Dubai’s upcoming residential units tells a clear story about the timeline of supply growth:

• 71% of units (approximately 187,116) are between 0% and 20% complete.
• 12% of units are at 21% to 40% progress.
• Many of these units are not expected for handover until 2028 or beyond.

“With most of the upcoming supply not arriving until several years down the line, I don’t foresee a significant drop in rental prices in the near term,” says Al Msaddi. “And as long as rent remains high, property values are also likely to stay stable or increase.”

This extended timeline means that, while Dubai is actively expanding its residential supply, the impact won’t be felt immediately. As a result, tenant demand is likely to remain strong, particularly for high-quality, well-located properties.

A Balanced Market for Investors

For investors concerned about oversupply, these numbers should offer reassurance. While Dubai has ambitious construction plans, the gradual handover of these units will prevent a sudden oversupply.

“We’re entering a more stable, sustainable phase in the Dubai property market,” Al Msaddi observes. “The city’s strategic approach to pacing new handovers is setting up for a balanced market. This benefits tenants by ensuring quality housing and supports investors by stabilizing property values over time.”

This measured approach to development ensures a sustainable future for Dubai's real estate market, laying the groundwork for continued growth and prosperity.

What This Means for Tenants and Buyers

Tenants looking to secure long-term housing might consider purchasing in today’s market rather than waiting for rents to decrease, given the high demand and delayed supply timeline. For buyers, the outlook is also positive: Dubai’s steady demand suggests long-term value in property investments, with limited supply growth over the next few years to stabilize prices.

As Dubai’s real estate market matures, the city remains one of the most attractive destinations for both residents and investors. With strategic supply pacing and resilient demand, Dubai’s rental prices and property values are set to stay strong, reinforcing the city’s position as a thriving, stable real estate hub. Looking to buy, sell, or rent a property in Dubai? Visit fäm Properties and explore our comprehensive real estate solutions.