Overview
- Forecasts from Colife point to an average vacancy rate near 12% in 2026, with peaks around 16% in July and September and troughs near 5% in October and November.
- Rents are projected to rise by roughly 4–6% only in constrained, high-demand pockets, led by villas, townhouses and larger prime apartments in established beachfront communities.
- Industry voices describe a more tenant-friendly landscape, with landlords expanding multi-cheque options, digital payments and targeted incentives, particularly in older buildings.
- Betterhomes data highlights an expanding pipeline — about 200,000 units expected by 2027 — concentrated in areas such as Dubai Hills Estate, Business Bay, Downtown, JVC, Al Furjan and Dubai Marina, even as population growth above four million sustains demand.
- Short- and mid-term segments face pressure, with Colife flagging up to 5% low-season declines for mid-term rents and AirDNA tallying roughly 25,000 short-term listings in 2025, reinforcing a shift toward long-term leases and homeownership.