Authored by the expert who managed and guided the team behind the United Arab Emirates Property Pack
Yes, the analysis of Dubai's property market is included in our pack
If you're looking to rent or invest in rental property in Dubai, you probably want to know what realistic rents look like right now.
This guide breaks down average rents by apartment size, top neighborhoods, tenant preferences, and the costs landlords face in Dubai as of January 2026.
We update this blog post regularly to reflect the latest market data and trends in Dubai's rental market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Dubai.
Insights
- Dubai studio rents average around AED 5,000 per month in 2026, but waterfront districts like Dubai Marina can push that figure 40% higher than inland areas like International City.
- Year-over-year rent growth in Dubai has slowed to around 4% to 6% in early 2026, down from double-digit increases seen in 2023 and 2024.
- Properties within walking distance of Dubai Metro stations typically rent 10% to 15% faster than similar units farther from transit.
- Dubai's rental vacancy rate sits between 4% and 7% citywide, meaning landlords still find tenants relatively quickly in most neighborhoods.
- Furnished apartments in Dubai command a rent premium of roughly AED 1,000 to AED 2,000 per month compared to unfurnished units of the same size.
- The 5% Dubai housing fee, charged monthly through DEWA bills, is often overlooked by new tenants and can add AED 250 to AED 500 to monthly costs.
- Family-friendly communities like Dubai Hills Estate and Arabian Ranches see 2-bedroom villas renting for AED 180,000 to AED 280,000 per year.
- Peak rental demand in Dubai hits between August and October when families relocate before the school year starts.
Fact-checked and reviewed by our local expert
Jean-Charles Salvin 🇫🇷
Co-Founder, Best Dubai Condos
What are typical rents in Dubai as of 2026?
What's the average monthly rent for a studio in Dubai as of 2026?
As of January 2026, the average monthly rent for a studio apartment in Dubai is around AED 5,000, which works out to roughly $1,360 or €1,250 per month.
Depending on the building quality and location, studio rents in Dubai typically range from AED 3,000 per month in areas like International City (about $820 or €750) up to AED 7,500 per month in waterfront districts like Dubai Marina (about $2,040 or €1,875).
The main factors that cause studio rents to vary within Dubai include proximity to the Metro, building age and amenities, whether the unit has a view, and whether it's located in a lifestyle district like Downtown or a more suburban community like Al Nahda.
What's the average monthly rent for a 1-bedroom in Dubai as of 2026?
As of January 2026, the average monthly rent for a 1-bedroom apartment in Dubai is around AED 7,500, which works out to roughly $2,040 or €1,875 per month.
Most 1-bedroom apartments in Dubai rent between AED 5,000 per month in affordable areas (about $1,360 or €1,250) and AED 12,000 per month in prime locations (about $3,265 or €3,000).
Neighborhoods like International City and Al Nahda tend to have the cheapest 1-bedroom rents in Dubai, while areas like Palm Jumeirah, Downtown Dubai, and DIFC command the highest prices for this apartment type.
What's the average monthly rent for a 2-bedroom in Dubai as of 2026?
As of January 2026, the average monthly rent for a 2-bedroom apartment in Dubai is around AED 11,500, which works out to roughly $3,130 or €2,875 per month.
Most 2-bedroom apartments in Dubai rent between AED 7,000 per month in more affordable communities (about $1,905 or €1,750) and AED 20,000 per month in luxury waterfront areas (about $5,445 or €5,000).
Areas like Jumeirah Village Circle and Dubai Silicon Oasis offer some of the most affordable 2-bedroom rents in Dubai, while Palm Jumeirah, Downtown Dubai, and Bluewaters Island have the highest 2-bedroom rental prices.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Dubai.
What's the average rent per square meter in Dubai as of 2026?
As of January 2026, the average rent per square meter in Dubai is around AED 1,300 per year (or about AED 108 per month), which works out to roughly $354 or €325 per square meter annually.
Across different neighborhoods, rent per square meter in Dubai ranges from about AED 800 per year in affordable areas ($218 or €200) up to AED 2,200 per year in prime locations ($600 or €550).
Compared to other major cities in the UAE, Dubai's rent per square meter sits higher than Sharjah or Ajman but remains competitive with Abu Dhabi's prime districts.
Properties in Dubai that push rent per square meter above average typically have waterfront views, newer building quality, proximity to the Metro, and premium amenities like private pools or concierge services.
How much have rents changed year-over-year in Dubai in 2026?
As of January 2026, apartment rents in Dubai are up approximately 4% to 6% year-over-year citywide.
The main factors driving rent changes in Dubai this year include continued population growth from relocations, steady demand from corporate moves, and new supply coming onto the market that is helping to moderate the pace of increases.
This year's rent growth in Dubai is notably slower than 2024 and 2023, when annual increases often reached double digits in popular districts, meaning the market is stabilizing rather than accelerating.
What's the outlook for rent growth in Dubai in 2026?
As of January 2026, mainstream apartment rents in Dubai are projected to grow between 3% and 6% over the coming year, with prime areas potentially doing better and oversupplied micro-markets doing worse.
Key factors likely to influence rent growth in Dubai in 2026 include continued population growth, a supportive macro backdrop from the UAE's economic momentum, and the pace of new residential supply being delivered.
Neighborhoods in Dubai expected to see the strongest rent growth in 2026 include Dubai Marina, Downtown Dubai, and Business Bay, where demand from relocations and lifestyle seekers remains high.
Risks that could cause rent growth in Dubai to differ from projections include a sudden economic slowdown, faster-than-expected supply deliveries, or shifts in global relocation patterns affecting expat demand.
We have made this infographic to give you a quick and clear snapshot of the property market in the UAE. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods rent best in Dubai as of 2026?
Which neighborhoods have the highest rents in Dubai as of 2026?
As of January 2026, the three neighborhoods with the highest average rents in Dubai are Palm Jumeirah (averaging AED 18,000 to AED 35,000 per month or $4,900 to $9,500 or €4,500 to €8,750), Downtown Dubai (averaging AED 12,000 to AED 25,000 per month or $3,265 to $6,800 or €3,000 to €6,250), and DIFC (averaging AED 14,000 to AED 28,000 per month or $3,810 to $7,620 or €3,500 to €7,000).
These neighborhoods command premium rents in Dubai because they offer waterfront access, iconic views, walkability, proximity to business hubs, and world-class dining and entertainment options.
The tenant profile that typically rents in these high-rent Dubai neighborhoods includes senior executives, high-earning expat professionals, and corporate relocations with generous housing allowances.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Dubai.
Where do young professionals prefer to rent in Dubai right now?
The top three neighborhoods where young professionals prefer to rent in Dubai are Dubai Marina, JLT (Jumeirah Lake Towers), and Business Bay, all of which offer a mix of nightlife, dining, and easy commutes.
Young professionals in Dubai typically pay between AED 5,500 and AED 10,000 per month ($1,500 to $2,720 or €1,375 to €2,500) for a studio or 1-bedroom in these neighborhoods.
The specific amenities that attract young professionals to these Dubai neighborhoods include Metro access, waterfront promenades, co-working spaces, gyms, and a vibrant social scene with restaurants and bars within walking distance.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Dubai.
Where do families prefer to rent in Dubai right now?
The top three neighborhoods where families prefer to rent in Dubai are Dubai Hills Estate, Arabian Ranches, and Mirdif, all of which offer larger homes, parks, and a quieter community feel.
Families in Dubai typically pay between AED 10,000 and AED 22,000 per month ($2,720 to $5,990 or €2,500 to €5,500) for a 2 to 3 bedroom apartment or villa in these family-friendly communities.
The features that make these Dubai neighborhoods attractive to families include gated communities, green spaces, playgrounds, community pools, and proximity to supermarkets and healthcare facilities.
Top-rated schools near these family-friendly Dubai neighborhoods include GEMS schools in Dubai Hills, Jumeirah English Speaking School near Arabian Ranches, and Uptown School in Mirdif.
Which areas near transit or universities rent faster in Dubai in 2026?
As of January 2026, the three areas near transit hubs or universities that rent fastest in Dubai are Business Bay (near the Metro), JLT/DMCC (on the Red Line), and Dubai Silicon Oasis (near Dubai International Academic City).
Properties in these high-demand Dubai areas typically stay listed for only 15 to 25 days on average, compared to 30 to 40 days in less connected neighborhoods.
The rent premium for properties within walking distance of Metro stations or universities in Dubai is typically AED 500 to AED 1,500 per month ($136 to $408 or €125 to €375) compared to similar units farther away.
Which neighborhoods are most popular with expats in Dubai right now?
The top three neighborhoods most popular with expats in Dubai are Dubai Marina, JBR (Jumeirah Beach Residence), and Downtown Dubai, all of which offer walkable waterfront living and international amenities.
Expats in Dubai typically pay between AED 7,000 and AED 18,000 per month ($1,905 to $4,900 or €1,750 to €4,500) depending on apartment size and building quality in these popular neighborhoods.
The features that make these Dubai neighborhoods attractive to expats include beach access, international restaurants, English-speaking services, and proximity to major employers in DIFC and Dubai Media City.
The nationalities most represented in these expat-popular Dubai neighborhoods include British, Indian, Pakistani, Filipino, and Western European professionals working in finance, media, and technology.
And if you are also an expat, you may want to read our exhaustive guide for expats in Dubai.
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Who rents, and what do tenants want in Dubai right now?
What tenant profiles dominate rentals in Dubai?
The top three tenant profiles that dominate the rental market in Dubai are young professionals (singles and couples), families with children, and corporate relocations on company-sponsored housing.
Young professionals make up roughly 40% of Dubai's rental demand, families account for about 35%, and corporate relocations represent around 20%, with the remaining 5% being students and short-term residents.
Young professionals in Dubai typically seek studios and 1-bedrooms in transit-connected areas, families look for 2 to 4 bedroom villas or apartments in community developments, and corporate relocations often prefer move-in-ready furnished units in central locations.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Dubai.
Do tenants prefer furnished or unfurnished in Dubai?
In Dubai, roughly 45% of tenants prefer furnished rentals while 55% prefer unfurnished, though this split varies significantly by neighborhood and tenant type.
Furnished apartments in Dubai typically command a rent premium of AED 1,000 to AED 2,500 per month ($270 to $680 or €250 to €625) compared to unfurnished units of the same size and location.
The tenant profiles that tend to prefer furnished rentals in Dubai include newly arrived expats, corporate relocations, short-term contractors, and singles or couples who want to move in quickly without the hassle of buying furniture.
Which amenities increase rent the most in Dubai?
The top five amenities that increase rent the most in Dubai are Metro proximity, water or skyline views, private parking, in-building gym and pool facilities, and newer building quality with modern finishes.
In terms of rent premiums, Metro proximity adds about AED 500 to AED 1,000 per month ($136 to $270 or €125 to €250), premium views add AED 1,000 to AED 3,000 per month ($270 to $815 or €250 to €750), and newer buildings with full amenities can command AED 1,500 to AED 2,500 per month more ($408 to $680 or €375 to €625) than older buildings in the same area.
In our property pack covering the real estate market in Dubai, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Dubai?
The top five renovations that get the best ROI for rental properties in Dubai are fresh paint and lighting updates, kitchen fixture and countertop upgrades, bathroom regrouting and fixture replacements, durable flooring upgrades, and adding a simple furnishing package for target tenant segments.
Fresh paint and lighting typically cost AED 3,000 to AED 8,000 ($815 to $2,175 or €750 to €2,000) and can increase rent by AED 200 to AED 500 per month, while kitchen and bathroom surface upgrades costing AED 10,000 to AED 25,000 ($2,720 to $6,800 or €2,500 to €6,250) can boost rent by AED 500 to AED 1,000 per month in Dubai.
Renovations that tend to have poor ROI and should be avoided by landlords in Dubai include full structural changes, luxury appliance upgrades in mid-market buildings, and extensive customization that may not appeal to the next tenant.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UAE versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How strong is rental demand in Dubai as of 2026?
What's the vacancy rate for rentals in Dubai as of 2026?
As of January 2026, the vacancy rate for rental properties in Dubai is estimated at 4% to 7% citywide for mainstream apartments, with prime buildings running tighter and older or poorly located buildings running higher.
Across different neighborhoods in Dubai, vacancy rates range from as low as 2% to 3% in high-demand areas like Dubai Marina and Downtown to 8% to 12% in oversupplied or less connected communities.
The current vacancy rate in Dubai is lower than the historical average of around 8% to 10% seen in softer market years, reflecting the strong population growth and relocation activity that has characterized the market since 2021.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Dubai.
How many days do rentals stay listed in Dubai as of 2026?
As of January 2026, rentals in Dubai stay listed for an average of 20 to 35 days when priced correctly, with well-located studios and 1-bedrooms moving faster than larger units.
Across different property types and neighborhoods in Dubai, days on market range from as few as 10 to 15 days in high-demand Metro-linked areas to 45 to 60 days for overpriced units or properties with awkward layouts.
The current days-on-market figure in Dubai is roughly similar to one year ago, reflecting a market that has stabilized after the rapid absorption seen in 2023 and 2024.
Which months have peak tenant demand in Dubai?
The peak months for tenant demand in Dubai are August through October and January through March, when relocations and new job starts drive the highest activity.
The specific factors that drive seasonal demand patterns in Dubai include the school year calendar (families move before September), corporate budget cycles (new roles often start in Q1), and the cooler weather months when more people are willing to apartment hunt.
The months with the lowest tenant demand in Dubai are typically June and July, when summer heat, school holidays, and Ramadan timing can slow down viewings and lease signings.
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What will my monthly costs be in Dubai as of 2026?
What property taxes should landlords expect in Dubai as of 2026?
As of January 2026, landlords in Dubai do not pay a traditional annual property tax like in many Western cities, but they do pay recurring building service charges that typically range from AED 10 to AED 30 per square foot per year ($2.70 to $8.15 or €2.50 to €7.50 per square foot), plus transaction fees when buying or selling.
The realistic range of annual service charges in Dubai runs from about AED 8,000 per year for a modest studio ($2,175 or €2,000) up to AED 50,000 or more per year for a large villa in a premium community ($13,600 or €12,500).
In Dubai, service charges are set by building management and depend on the age of the building, the level of amenities provided, and the efficiency of the owners' association rather than a government-set tax rate.
Please note that, in our property pack covering the real estate market in Dubai, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What maintenance budget per year is realistic in Dubai right now?
A realistic annual maintenance budget for a typical rental property in Dubai is around 1% to 1.5% of the property value, which for a AED 1,000,000 apartment means AED 10,000 to AED 15,000 per year ($2,720 to $4,080 or €2,500 to €3,750), on top of service charges.
Depending on property age and condition, annual maintenance costs in Dubai can range from as low as AED 5,000 for a newer apartment ($1,360 or €1,250) to AED 25,000 or more for an older villa needing regular upkeep ($6,800 or €6,250).
Most experienced landlords in Dubai set aside about 8% to 12% of their annual rental income specifically for maintenance, repairs, and periodic refreshes to keep the property competitive.
What utilities do landlords often pay in Dubai right now?
In most long-term Dubai rentals, tenants pay their own DEWA (electricity and water) bills, but landlords should be aware that the 5% Dubai housing fee is charged to tenants monthly through their DEWA bill as a percentage of annual rent.
For landlords who include utilities in the rent (common in some furnished or short-term rentals), monthly DEWA costs typically run AED 400 to AED 1,200 per month ($109 to $325 or €100 to €300) depending on apartment size and summer cooling needs.
The common practice in Dubai is for tenants to set up their own DEWA account and pay all utility costs directly, with landlords only responsible for service charges and building maintenance contributions.
How is rental income taxed in Dubai as of 2026?
As of January 2026, individual landlords in Dubai do not pay personal income tax on rental income, though the UAE's corporate tax rules may apply if you operate through a business structure or exceed certain thresholds.
The main deductions landlords can claim against rental income in Dubai relate to service charges, maintenance costs, and agency fees, though the practical impact is limited since there is no personal income tax to offset for most individual investors.
A common tax mistake specific to Dubai that landlords should avoid is assuming that corporate tax never applies to real estate income, as the UAE Federal Tax Authority has specific guidance on when rental income from natural persons may or may not be excluded from corporate tax depending on how the investment is structured.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Dubai.
We made this infographic to show you how property prices in the UAE compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Dubai, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Dubai Land Department Rental Index | It's the official Dubai government tool used to benchmark rents and guide allowed rent increases. | We use it as the official anchor for what Dubai considers market rent for comparable homes. We also use it to ground the discussion on rent caps and renewals. |
| Cavendish Maxwell Q1 2025 Report | It's a major UAE real estate consultancy and this report explicitly cites Dubai Land Department rental contract data. | We use its DLD-backed rent growth numbers to describe how rents have been moving. We also use its supply pipeline discussion to shape the 2026 outlook. |
| Bayut Dubai Rental Index | It's one of the biggest UAE portals and publishes a transparent rental index with bedroom-type breakdowns. | We use it to estimate typical studio, 1-bed, and 2-bed rents in a way that matches what most renters actually see in listings. We cross-check these figures against DLD and consultancy trend data. |
| Bayut H1 2025 Dubai Rental Report | It's a detailed market report from a leading portal with clear methodology based on tracked asking rents. | We use it to identify which communities are consistently most searched and most rented. We also use it to segment neighborhoods into affordable, mid-tier, and luxury categories. |
| dubizzle Dubai Rental Report H1 2025 | dubizzle is a top UAE marketplace and publishes periodic summaries that are widely cited locally. | We use it to validate which areas are hot and moving fast in the real world of searches and listings. We cross-check it against Bayut so we're not relying on one portal's audience alone. |
| CBRE UAE Real Estate Review Q2 2025 | CBRE is a global research-led consultancy, and their UAE reviews are a standard reference for institutional-grade market context. | We use it for macro context and the moderation narrative. We use it to support why 2026 rent growth is expected to be steadier rather than explosive. |
| JLL UAE Living Market Dynamics | JLL is a global real estate consultancy known for consistent methods across markets. | We use it specifically to support the idea that rental growth has cooled to mid-single digits in 2025 for apartments. We then carry that deceleration logic into our January 2026 estimates. |
| Dubai Statistics Center Population Data | It's the official Government of Dubai gateway pointing to Dubai Statistics Center population statistics. | We use it to ground the biggest structural demand driver: Dubai's population growth. We connect that demand growth to why rents stay supported even when new supply arrives. |
| Dubai Tourism H1 2025 Press Release | It's a government source and provides official tourism numbers that affect housing demand in central areas. | We use it as a supporting demand signal for central and lifestyle districts that attract relocations and corporate moves. We keep it secondary but it helps explain why certain areas are popular. |
| UAE Central Bank Quarterly Review Sep 2025 | It's the UAE's central bank and its forecasts are among the most credible macro references. | We use it to frame the 2026 macro backdrop. We use it as a guardrail so our rent outlook matches the economy's direction. |
| UAE Federal Tax Authority VAT Real Estate Guide | It's the official tax authority guidance explaining how VAT applies to real estate. | We use it to clearly explain VAT treatment for residential leasing in plain English. We also use it to prevent common reader mistakes like assuming VAT is always added to rent. |
| UAE FTA Real Estate Investment for Natural Persons | It's official guidance on how corporate tax rules interact with real estate income for individuals. | We use it to explain when rental income may be excluded from corporate tax for individuals. We keep the explanation practical and non-technical for non-professional readers. |
| Rental Disputes Center Dubai | It's the official Dubai body handling rental disputes and procedures. | We use it to point readers to the official path if a rent increase or renewal becomes a dispute. We keep it as a safety net for when things go wrong. |
| Engel and Volkers UAE Housing Fee Explainer | It's a well-known international brokerage and the page summarizes how the housing fee works in practice. | We use it only as a secondary cross-check for the 5% housing fee concept that tenants see on DEWA bills. We keep the core tax rules anchored to the Federal Tax Authority documents. |
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