Dubai Real Estate Rentals Market Report 1-3 January 2026
Period Note: This report covers the first three days of the year, including New Year's Day (public holiday) and the weekend, reflecting rental activity during a traditionally slower period.
Market Overview
The rental market opened 2026 with notable momentum, recording over AED 1.7 billion in transactions. Despite the holiday period, activity remained robust, with renewed contracts slightly outpacing new leases in total value. The market displayed a familiar pattern: freehold properties attracted the majority of capital, while the non-freehold segment saw higher transaction volume. Labor camp rentals once again emerged as a significant value driver, heavily influencing the top-performing areas.
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Source: Building Arabia.
1. Period Snapshot
| Metric | Total (AED) | Total (USD) |
|---|---|---|
| Total Transactions | 5,141 | – |
| Total Rental Value | 1,715,717,884 | 467 Million |
Conversion at AED 3.67 = USD 1. Figures cover 1-3 Jan 2026.
2. Lease Activity
| Contract Status | Number of Transactions | Total (AED) | Total (USD) |
|---|---|---|---|
| Renewed | 3,116 | 966,876,658 | 263 Million |
| New | 2,025 | 748,841,225 | 204 Million |
| Grand Total | 5,141 | 1,715,717,884 | 467 Million |
Takeaway: Renewals accounted for 56% of the total value, indicating stable tenancy and consistent occupancy as the year began. New leases still represented a substantial 44% of capital, pointing to ongoing demand.
3. Ownership Profile
| Ownership Type | Number of Transactions | Total (AED) | Total (USD) |
|---|---|---|---|
| Free Hold | 2,713 | 1,328,724,527 | 362 Million |
| Non Free Hold | 2,428 | 386,993,357 | 105 Million |
| Grand Total | 5,141 | 1,715,717,884 | 467 Million |
Takeaway: Freehold properties generated 77% of rental value, continuing their dominance. The higher transaction count in non-freehold areas highlights their role as the volume engine for mid-market rentals.
4. Market Focus
| Usage | Number of Transactions | Total (AED) | Total (USD) |
|---|---|---|---|
| Residential | 4,071 | 1,419,211,588 | 387 Million |
| Commercial | 1,031 | 289,796,788 | 79 Million |
| Other | 39 | 6,709,507 | 1.8 Million |
| Grand Total | 5,141 | 1,715,717,884 | 467 Million |
Takeaway: Residential rentals formed the core, comprising 83% of total value. The commercial segment contributed a solid 17%, reflecting sustained business activity early in the year.
5. Property Type Breakdown
| Property Type | Number of Transactions | Total (AED) | Total (USD) |
|---|---|---|---|
| Unit | 4,668 | 1,628,979,946 | 444 Million |
| Labor Camps | 351 | 787,629,447 | 215 Million |
| Flat | 3,387 | 549,890,180 | 150 Million |
| Shop | 444 | 202,558,258 | 55 Million |
| Office | 335 | 59,931,831 | 16 Million |
| Other Unit Types | 151 | 28,970,230 | 7.9 Million |
| Villa | 288 | 74,235,875 | 20 Million |
| Building | 1 | 3,661,420 | 1.0 Million |
| Land | 30 | 5,591,367 | 1.5 Million |
| Virtual Unit | 154 | 3,249,275 | 0.9 Million |
| Grand Total | 5,141 | 1,715,717,884 | 467 Million |
Takeaway: The unit category dominated, delivering 95% of total value. Labor camp rentals were particularly impactful, contributing 46% of the period's capital—a clear indicator of ongoing large-scale workforce accommodation demand.
6. Top Performing Areas
| Rank | Locality | Number of Transactions | Total (AED) | Total (USD) |
|---|---|---|---|---|
| 1 | Jabal Ali Industrial First | 222 | 649,986,488 | 177 Million |
| 2 | Al Goze Industrial Second | 130 | 308,315,916 | 84 Million |
| 3 | Al Ttay | 108 | 142,063,000 | 38.7 Million |
| 4 | Al Khairan First | 133 | 112,953,836 | 30.8 Million |
| 5 | Burj Khalifa | 110 | 25,814,289 | 7.0 Million |
| 6 | Jabal Ali First | 224 | 22,937,262 | 6.2 Million |
| 7 | Business Bay | 228 | 21,491,325 | 5.9 Million |
| 8 | Al Warsan First | 213 | 21,181,024 | 5.8 Million |
| 9 | Al Barsha First | 86 | 18,507,729 | 5.0 Million |
| 10 | Marsa Dubai | 81 | 13,623,101 | 3.7 Million |
Additional Activity
Rental transactions were recorded across 144 other localities, with notable volume in Al Barsha South Fourth, Naif, Al Suq Al Kabeer, Nadd Hessa, and Al Karama.
Takeaway: Industrial zones dominated the rankings. Jabal Ali Industrial First and Al Goze Industrial Second alone accounted for 56% of the total rental value, driven overwhelmingly by labor camp contracts. The strong showing in Al Ttay and Al Khairan First suggests significant commercial or large-scale residential leasing activity in these areas. Despite lower average values, established urban districts like Business Bay and Burj Khalifa maintained high transaction volumes.
Final Observation
The rental market's start to 2026 reaffirms several established trends: the outsized influence of industrial accommodation, the stability of residential renewals, and the geographic concentration of high-value contracts. The significant capital deployed in labor camps indicates continued expansion in Dubai's logistics and industrial sectors, while steady residential activity points to consistent underlying demand.
Disclaimer:
This report is based on publicly available data and Dubai Land Department (DLD) transaction summaries as of the date mentioned in the title of this post.
Final and detailed figures from the DLD may vary upon official release.
1 US Dollar = 3.672 UAE Dirhams
This report is merely informative, and all investments come with risk. You are responsible for your decisions.