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Rental costs in Dubai may decrease by 20% by 2025.

The rent drop you’ve been holding out for is finally on the horizon…

Dubai’s rental market has been a wild ride lately — nonstop hikes with no chill at lease renewals. But guess what? Things are finally starting to shift. Rental prices are showing signs of cooling, and with a surge of new apartments set to hit the market, we could be looking at a price dip of up to 20% in 2025. For renters, that could finally mean some much-needed breathing room.

A much needed correction

After a wild four-year streak of rent hikes, Dubai might finally be catching a break. Rizwan Sajan, founder of Danube Properties, is predicting a 10–20% rent correction in 2025. The reason? Prices skyrocketed post-pandemic, and a smooth cooldown is way better than a messy crash. “Rentals have gone very high,” Sajan said. “A correction will help. It’s healthy.” Sounds like just what the market needs right now.

New supply = new opportunities

Some neighborhoods are already feeling the shift, with rent prices starting to dip—especially in older properties. The drop is mostly thanks to rising competition among landlords and the influx of newer, more stylish units hitting the market. So if you’ve been apartment hunting in Dubai, stay sharp — 2025 could bring some seriously good deals your way.

The numbers

In just Q1 of 2025, a hefty 7,848 new units were handed over — and that’s just the beginning. Over 71,000 more are expected by the end of the year, with 80,000 set for 2026 and nearly 59,000 in 2027. The takeaway? More options, more competition, and (fingers crossed) way more renter-friendly prices on the horizon.

What this means for renters and buyers

For renters, 2025 could mark a much-needed turning point — with better deals and a wider range of options finally hitting the market. If high prices have kept you on the sidelines, this could be your moment to lock in a more budget-friendly spot in a city that’s always buzzing. And if you’re looking to buy? Expect more competitive pricing across rentals and sales, potentially leading to stronger returns on your investment down the line.

The bottom line

If you’re thinking about renting or investing in Dubai, 2025 might just be your golden window. With the market finally heading toward some long-overdue balance, better deals are on the table — making it a prime time to make your move.

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