Dubai’s Rental Market is Evolving

Dubai’s rental market is undergoing a significant transformation, with long-term leases becoming increasingly popular. The number of long-term rentals has risen by 17.3% compared to last year, reflecting a shift in how people perceive the city - increasingly as a permanent place to live rather than just a temporary stay.

This change is being driven by families, students, and expats entering one-year contracts to protect themselves from rising rents. For example, a two-bedroom apartment in Dubai Marina costs around AED 14,999/month for a long-term lease, compared to AED 16,499/month for short-term accommodation.

Industry experts note that locking in a lease for a full year allows tenants to better manage their budgets and avoid sharp rent increases. Additionally, many expats and digital nomads are now seeing Dubai as a long-term home rather than just a temporary base for projects.

September is an optimal period for tenants: more available apartments, greater negotiation potential, and lower competition. Activity typically rises in the following months, with rents increasing quickly and the best properties being snapped up fast.

The most sought-after areas for long-term rentals include Dubai Marina, Downtown, Jumeirah Village Circle, Dubai Hills, and Al Barsha - all offering a balanced lifestyle, convenient amenities, and excellent connectivity.

For investors, this shift presents a major opportunity. Rental yields in Dubai now range between 7-12%, making it attractive for both individual investors and institutional players seeking stable returns.

In summary, this is a pivotal moment for the market. Tenants can secure stability, while owners and investors can benefit from a mature and sustainable market - reflecting Dubai’s evolution as a city designed not just for short visits, but for long-term living.