Dubai rents ease 6.2% while home prices stay above 2025 levels

Dubai: Tenants in Dubai saw some relief during the second quarter of 2026, with average residential rents falling 6.2% from the previous three months, while property prices remained above last year’s levels.

Average rents were also 2.6% lower than a year earlier, according to CBRE Middle East’s latest UAE Real Estate Market Review.

Home sales prices remained 1.9% higher year on year, suggesting that the market has moved into a period of moderation following several years of strong growth.

Around 18,000 residential units were completed across Dubai during the first half of the year, adding more options for tenants and buyers and helping to ease some of the pressure on prices.

Fewer than 37,000 residential transactions were recorded in Dubai during the second quarter, a decline of 29% from more than 51,000 sales in the same period of 2025.

The total value of transactions reached Dh88 billion, compared with nearly Dh154 billion a year earlier.

CBRE linked the slowdown to softer demand, fewer new project launches and increased housing supply during the first six months of the year.

The figures suggest that buyers are facing less competition than they did during the stronger conditions recorded last year.

Dubai’s office market continued to record strong demand, particularly for high-quality space in major commercial districts and free zones.

Average office rents increased 13% in the year to the end of the second quarter, while prime office rents rose 16%.

Occupancy remained at approximately 94%, reflecting the limited availability of Grade A offices across the city.

Demand remained concentrated in DIFC, TECOM and DMCC, where companies continued to lease space in future developments before construction was completed.

Abu Dhabi recorded similar conditions, with average office rents rising nearly 16% and occupancy reaching approximately 96%.

Demand was strongest in Abu Dhabi Global Market, supported by growth among financial services companies, hedge funds and investment firms.

Less than 300,000 square metres of new office space is expected to be completed in Abu Dhabi between 2026 and 2027, which CBRE said was likely to keep supply tight.