RENEWING RENTAL CONTRACT IN 2026? WHAT TO KNOW

As Dubai's rental market heads into a new year, growth is expected to remain steady but more selective, with informed tenants shaping the next phase

- BY NIVETHA DAYANAND Assistant Business Editor

Dubai's rental market is heading into 2026 on a more balanced footing, with rents expected to continue rising, but at a more moderate pace than the sharp increases seen in recent years. The city's maturing real estate cycle is giving tenants and landlords more clarity, and in many cases, more room to negotiate.

"Dubai's rental market is expected to maintain steady growth through early 2026, though the pace of increases will likely be moderate compared to the past two years," said Blagoje Antic, Chairman and CEO of DHG Holding. "Demand remains strong in well-connected, master-planned communities driven by sustained population growth, business inflows, and relocation of high-income professionals."

That demand, however, is no longer spread evenly across the city. As new developments come up, rental trends are becoming more segmented. "As more new supply enters the market in areas like Meydan and JVC, rental growth will become more segmented, with premium, newer projects outperforming older stock," Antic added. "The overall trajectory remains positive, supported by strong fundamentals rather than speculative demand."

WHAT TENANTS SHOULD WATCH WHEN RENEWING

For tenants preparing to renew lease in 2026, understanding the rules and using available tools is key. "Tenants should pay close attention to RERA's rental index and comparable listings in their area before negotiating renewals, as rent caps are designed to ensure fairness and prevent sudden increases," Antic said.