Dubai Real Estate Rentals Report 1 January – 10 January 2026
Dubai Real Estate Rentals Report
Reporting Period: 1 January – 10 January 2026
Market Overview
Dubai’s rental market opened 2026 with exceptionally high headline numbers, recording 31,455 rental contracts with a combined value of AED 44.84 billion (USD 12.21 billion) in just ten days.
However, as established in the previous rentals report, this figure does not represent a broad-based rental surge. Instead, it reflects a structural split between two parallel markets:
- Institutional / Workforce Leasing, dominated by large-scale labor accommodation contracts
- Retail Residential & Commercial Leasing, representing the actual day-to-day rental market
Failing to separate these two would materially misrepresent market conditions.
Sakura Gardens Dubai: Japanese-Inspired Resort Living
Source: Building Arabia.
OPTION 1 — DUAL-MARKET REPORTING
I. Institutional / Workforce Leasing Market
(Labor Camps, Staff Accommodation, Industrial-Driven Residential)
Market Reality
The defining feature of this period is the formalization of massive labor camp contracts, primarily concentrated in Jabal Ali Industrial First and surrounding industrial zones.
These contracts:
- Are typically multi-year
- Cover large-capacity workforce housing
- Are classified under Residential usage, but functionally institutional
- Dramatically inflate total market value figures
Labor Camps — The Core Distortion
- 2,784 labor camp contracts
- AED 35.76 billion (USD 9.74 billion)
- Represent 79.8% of total rental value
- Less than 9% of total contract count
This confirms the same structural distortion identified in the previous report: value concentration without proportional transactional breadth.
Institutional Property Types — Full Breakdown
C) Unit — Institutional-Dominant Segment
| Property Type | Contracts | Value (AED) | Value (USD) |
|---|---|---|---|
| Labor Camps | 2,784 | 35,759,262,697 | 9,737,397,232 |
| Staff Accommodation | 199 | 468,937,352 | 127,691,641 |
| Warehouse | 330 | 260,414,230 | 70,910,795 |
| Warehouse Complex | 32 | 21,988,353 | 5,987,186 |
| Factory | 1 | 50,000 | 13,615 |
| Complex Warehouse | 16 | 3,000,296 | 816,680 |
| Storage | 1 | 25,000 | 6,808 |
| Workshop | 15 | 2,298,674 | 626,043 |
| Other (Institutional) | 10 | 17,580,305 | 4,785,789 |
Institutional Land Leasing
B) Land
| Land Type | Contracts | Value (AED) | Value (USD) |
|---|---|---|---|
| Other (Industrial / Workforce) | 136 | 25,363,036 | 6,906,155 |
Land activity remains strictly functional, tied to industrial and workforce requirements rather than speculative leasing.
Institutional Geography Concentration
Jabal Ali Industrial First alone accounts for:
- AED 32.69 billion
- 73% of total rental value
Other industrial contributors include:
- Dubai Investment Park Second
- Jabal Ali First
- Al Goze Industrial zones
- Ras Al Khor Industrial areas
This confirms a south-west industrial corridor effect, not a citywide rental boom.
II. Retail Residential & Commercial Leasing Market
(The Real Rental Economy)
Market Reality
Once institutional contracts are isolated, the remaining market shows:
- High transactional depth
- Moderate contract values
- Strong demand for flats, villas, offices, shops
- A preference for new contracts over renewals in value terms
This segment reflects actual tenant behavior.
Contract Structure
By Contract Type
| Contract Type | Contracts | Value (AED) | Value (USD) |
|---|---|---|---|
| New | 12,113 | 35,920,721,547 | 9,780,412,457 |
| Renewed | 19,342 | 8,915,539,571 | 2,427,211,333 |
| Total | 31,455 | 44,836,261,118 | 12,207,623,790 |
While renewals dominate numerically, new contracts account for 80.1% of total value, largely due to institutional leases.
Ownership Structure
By Ownership Type
| Ownership Type | Contracts | Value (AED) | Value (USD) |
|---|---|---|---|
| Free Hold | 15,729 | 11,487,784,574 | 3,126,833,727 |
| Non-Free Hold | 15,726 | 33,348,476,544 | 9,080,790,063 |
| Total | 31,455 | 44,836,261,118 | 12,207,623,790 |
Non-freehold dominance is directly linked to institutional leasing, not residential weakness.
Property Usage — Full Table (No Abbreviation)
| Usage | Contracts | Value (AED) | Value (USD) |
|---|---|---|---|
| Residential | 23,561 | 42,593,112,642 | 11,598,104,392 |
| Commercial | 7,667 | 2,103,510,339 | 572,685,665 |
| Industrial | 61 | 98,606,327 | 26,850,103 |
| Educational Facility | 1 | 1,500,000 | 408,450 |
| Health Facility | 2 | 585,000 | 159,296 |
| Industrial / Commercial | 1 | 167,640 | 45,648 |
| Storage | 6 | 2,137,600 | 581,966 |
| Tourist Origin | 2 | 3,747,985 | 1,020,578 |
| Other | 154 | 32,893,586 | 8,957,013 |
| Total | 31,455 | 44,836,261,118 | 12,207,623,790 |
Retail Property Types — FULL EXPANSION
C) Unit — Retail-Oriented Components
| Unit Type | Contracts | Value (AED) | Value (USD) |
|---|---|---|---|
| Flat | 18,532 | 5,526,242,254 | 1,504,815,626 |
| Office | 2,759 | 661,645,528 | 180,146,077 |
| Shop | 2,870 | 801,859,011 | 218,346,289 |
| Studio | 280 | 92,631,049 | 25,223,435 |
| Hotel | 309 | 148,878,600 | 40,539,573 |
| Showroom | 112 | 83,616,692 | 22,772,960 |
| Restaurant | 25 | 26,263,525 | 7,146,548 |
| Restaurants Complex | 5 | 1,600,146 | 435,641 |
| Parking | 17 | 5,864,100 | 1,596,287 |
| Kiosk | 18 | 947,183 | 257,855 |
| Supermarket (Multi-section) | 1 | 8,789,288 | 2,392,889 |
| Store | 21 | 2,358,101 | 642,395 |
| Clinic | 10 | 2,134,318 | 581,382 |
| Health Club | 2 | 595,150 | 162,056 |
| Nursery | 1 | 212,500 | 57,838 |
| Other | 10 | 17,580,305 | 4,785,789 |
D) Villa — FULL TABLE
| Villa Type | Contracts | Value (AED) | Value (USD) |
|---|---|---|---|
| Villa | 1,678 | 709,568,850 | 193,215,598 |
| Complex Villas | 119 | 19,612,151 | 5,339,597 |
| Clinic | 6 | 3,932,000 | 1,070,964 |
| Shop | 6 | 622,000 | 169,333 |
| Showroom | 4 | 1,198,000 | 326,195 |
| Flat | 2 | 625,500 | 170,286 |
| Restaurant | 1 | 280,000 | 76,244 |
| Health Club | 1 | 287,520 | 78,292 |
| Arabian House | 1 | 60,000 | 16,338 |
| Other | 1 | 251,300 | 68,435 |
E) Virtual Units
| Virtual Unit Type | Contracts | Value (AED) | Value (USD) |
|---|---|---|---|
| Office | 1,098 | 76,812,775 | 20,929,222 |
| Shop | 11 | 75,500,968 | 20,545,710 |
| Total | 1,109 | 152,313,742 | 41,474,932 |
Top 10 Localities by Rental Value
| Rank | Locality | Contracts | Value (AED) | Value (USD) |
|---|---|---|---|---|
| 1 | Jabal Ali Industrial First | 1,475 | 32,693,976,210 | 8,902,579,562 |
| 2 | Dubai Investment Park Second | 792 | 2,846,296,118 | 775,046,438 |
| 3 | Oud Metha | 332 | 1,852,337,558 | 504,291,417 |
| 4 | Jabal Ali First | 1,512 | 917,011,234 | 249,652,159 |
| 5 | Al Goze Fourth | 337 | 491,579,359 | 133,847,059 |
| 6 | Al Goze Industrial Second | 624 | 488,477,573 | 132,992,543 |
| 7 | Madinat Al Mataar | 305 | 369,114,511 | 100,499,781 |
| 8 | Al Thanyah Fifth | 497 | 245,448,988 | 66,825,659 |
| 9 | Burj Khalifa | 600 | 241,987,084 | 65,892,982 |
| 10 | Al Karama | 782 | 213,985,651 | 58,258,253 |
All other localities, including Business Bay, Al Barsha, Mirdif, Al Nahda, Deira districts, and outer residential zones, collectively accounted for AED 4.66 billion across 24,221 contracts, representing the true breadth of Dubai’s rental market.
Final Takeaway
This reporting period reinforces a critical point:
Dubai currently operates two rental markets at once.
- One is institutional, capital-heavy, and geographically concentrated
- The other is broad, transactional, and reflective of real tenant demand
Any analysis that does not separate labor camps from retail rentals will overstate strength and understate risk. When properly segmented, the market appears stable, active, and increasingly disciplined, not overheated.
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 = 3.6725 UAE Dirhams
This report is merely informative, and all investments come with risk. You are responsible for your decisions.