Property Rents in Dubai: June 2025 Market Analysis

As Dubai continues to solidify its position as a global real estate hub, the property rents in June 2025 presents a nuanced picture for property investors, owners, tenants, and market stakeholders.

Drawing on the latest residential rent transaction data through June 2025, this analysis highlights key trends, area-specific insights, and what they mean for your investment strategies

1. Overall market trends

Apartments: Segment-Specific Insights

Average Apartment Rent: In June 2025, the average rent for apartments reached AED 85,000, marking a 6.25% increase since January 2025 and an 8.3% rise year-over-year.

Growth Trajectory: The apartment segment has shown steady growth throughout the first half of 2025, with the most notable jump occurring between May and June, suggesting renewed demand or a shift in tenant preferences

The month-on-month increase highlights Dubai's attractiveness through population growth, where individuals initially rent before eventually buying their first property in the city.

2. Breakdown of property rents values by types, overall

Apartments 8.1% increase YoY

Villas and Townhouses 12.1% increase YoY

Commercial properties 150% increase YoY

3. Apartment rental highlights by area and unit-type

Beach main areas:

Dubai Marina and Plam Jumeirah

In Dubai Marina studios and 1-bedroom units saw a slight decrease compared to earlier in 2025, while 2-bedroom rents surged to 160,000 AED, indicating strong demand for larger units.

In Palm Jumeirah the studios reached a new high at 112,500 AED, a significant jump from earlier months, while 1- and 2-bedroom units remained stable, reflecting the area’s continued appeal for premium tenants.

City main areas:

Downtown Dubai and Business Bay

Downtown Dubai: Rents remained robust across all segments, with studios at 85,000 AED and 2-bedrooms at 185,000 AED, maintaining the area’s reputation for high-value leases.

Business Bay: Studios and 1-bedrooms experienced modest declines, but 2-bedroom rents held steady at 140,000 AED, suggesting a balanced market with selective demand.

4. Demand and Supply Dynamics

Supply-Side Dynamics and Future Outlook

Latest delivered projects in June were: THE VYBE - Metrical Real Estate Development in Jumeirah Village Circle (JVC) of 276 units at 1,194 AED Avg Price per Sqft

Binghatti Azure - Binghatti in Jumeirah Village Circle (JVC) of 650 units at 1,330 AED Avg Price per Sqft

Sobha Hartland - The Crest - Sobha Group in Al Merkadh of 1,518 units at 1,912 AED Avg Price per Sqft

Year-to-Date the number of completed units is sitting at 19,070

5. Market Outlook and Recommendations

The market is moving toward equilibrium, with increased supply providing tenants with more choices and negotiating power. Developers and landlords are offering more competitive pricing and incentives to attract tenants in a more balanced environment

Despite the broad supply increase, prime areas such as Dubai Marina, Palm Jumeirah, and Downtown Dubai continue to see strong demand and premium rents, as affluent tenants prioritize location and amenities

The introduction of the smart rental index in 2025 is adding transparency and data-driven pricing, further supporting a sustainable and informed rental market

Conclusion

Dubai’s rental market in June 2025 is defined by high demand—driven by population and economic growth—being met by an unprecedented supply of new units. This dynamic is leading to a moderation in rental price growth, increased competition among landlords, and a more stable, tenant-friendly environment, while premium locations continue to command strong interest and higher rents.

For more detailed insights, stay tuned for our next monthly report to keep updated of the latest market developments in Dubai.

Source: DXB Interact