Dubai rental market surges as contracts hit Dh126.4 billion
Registered leases post strong gains across residential and commercial segments
DUBAI – Dubai’s rental sector delivered a strong performance throughout 2025, underlining the emirate’s real estate stability and growing operational maturity.
The surge was driven by heightened demand, a broad mix of residential offerings, and improved clarity in regulatory frameworks governing stakeholders. Market data also pointed to rising confidence among tenants, investors and developers.
Figures released by the Dubai Land Department showed registered tenancy contracts increased by 6 per cent in volume and 17 per cent in value compared with 2024. The total reached 1.38 million contracts worth Dh126.4 billion, reflecting sustained momentum across both residential and commercial segments.
Rising demand
New tenancy contracts exceeded 513,000, marking a 10 per cent rise and reinforcing Dubai’s continued appeal as a global destination for living and employment. Renewed contracts also climbed by 3 per cent to more than 514,000, signalling stronger tenant retention and improved customer satisfaction levels.
Officials noted that the balanced rental performance aligns with the objectives of the Dubai Economic Agenda D33, which prioritises quality of life and strengthens the emirate’s position as a global hub to live, work and invest. It also supports the Dubai Real Estate Sector Strategy 2033, which seeks to build a sustainable property market through a balanced ownership and rental ecosystem supported by clear regulation.
Dubai’s real estate sector continues to solidify its role as a primary growth driver, supported by a vibrant rental market, increased sales momentum, and the steady expansion of real estate brokerage activity. pic.twitter.com/tCA0n72Vs3
— دائرة الأراضي والأملاك في دبي (@Land_Department) February 23, 2026
The steady performance of the rental segment highlights its role as a key entry point to homeownership while supporting broader social and economic stability. Authorities view the sector as a core pillar in building a resilient real estate ecosystem capable of sustaining long-term growth.
Project pipeline
Alongside rental gains, 2025 saw notable progress in project delivery. Completed real estate projects rose to 124, up 7 per cent year on year, with a combined value of Dh27.5 billion, representing a 23 per cent increase. The figures underline strong execution capacity and continued development activity across the market.
The pipeline remains robust. Projects under construction jumped 25 per cent to 937, a clear signal of developer confidence and expectations of sustained demand in the coming years.
Transaction activity also strengthened. Sold units increased by 25 per cent to 147,500, while the total transaction value reached Dh280 billion, up 30 per cent. The value of sold villas rose 12 per cent despite a drop in transaction volume, indicating a shift in buyer preference towards higher-value properties.
Licensing surge
At the regulatory level, Dubai’s real estate ecosystem expanded significantly. The number of registered real estate offices more than doubled, rising 102 per cent to 4,122 new registrations and bringing the total number of active offices to 10,182. The growth reflects rising demand for brokerage, property management, development and consultancy services within a tightly regulated environment.
During 2025, authorities issued 14,364 real estate licences across multiple activities. Real estate sales and purchase brokerage led the list with 6,009 licences, followed by leasing brokerage with 3,513.
Additional licences included 2,126 for transaction follow-up services, 714 for buying and selling land and properties, and 525 for real estate development. Other permits covered property supervision, mortgage brokerage, private property leasing and management, and real estate consultancy.
Officials said the diversity of licensing activity demonstrates the effectiveness of regulatory tools in boosting transparency, improving market efficiency and fostering a flexible business environment capable of supporting long-term sector growth.
The combined strength of the rental market, project delivery pipeline and licensing expansion points to an advanced level of institutional maturity within Dubai’s real estate sector. Authorities indicated they will continue refining regulatory frameworks and service efficiency to support stakeholders and reinforce investor and customer confidence.