New Supply Wave: How 210,000 New Units Will Affect Dubai Rent Prices (2025–2026)

Dubai’s rental market has hit a pivotal moment. After years of historic price increases driven by soaring demand and limited availability, the city is now gearing up for a significant shift in balance.

A staggering 210,000 new residential units are slated for delivery across 2025 and 2026. This influx—double the volume of the previous three years—is expected to cool rental inflation and improve affordability for tenants, especially in central neighborhoods.


Why This Supply Surge Matters

According to Fitch Ratings, the surge in supply could drive down property prices by up to 15% during the second half of 2025 and into 2026. This forecast marks a clear turning point after a steep climb in prices and rent.

While demand remains high, especially from foreign professionals and investors, the expanded inventory will naturally redirect tenant choices—particularly toward newer developments with attractive pricing and availability.


Signs of Stabilization Ahead

Insights from real estate analysts support this shift.

  • Cash-strapped tenants stand to benefit from improved options and greater negotiating leverage.

  • Rental growth is anticipated to slow in the short term, offering some relief to affordability pressures. 

This doesn’t spell a crash—but rather a cooling period after the red-hot surge witnessed in recent years, providing breathing room for both renters and developers.


What Tenants and Landlords Should Expect

For Renters:

  • More choice: Greater selection across both prime and emerging neighborhoods.

  • Stabilized pricing: Slower rent increases and improved value, especially for long-term leases.

For Landlords:

  • Increased competition: New developments challenge older projects to offer better quality or incentives.

  • Maintain quality standards: Properties with enhanced finishes or smart pricing strategies will retain demand.


Looking Beyond the Short Term

Even with this wave of supply, Dubai’s long-term fundamentals remain robust. Population projections, economic diversification under the D33 master plan, and sustained infrastructure improvements all continue to support rental demand. Yet, for now, the market is shifting—from unsustainable hikes to measured growth and healthier consumer access.


Conclusion

The delivery of 210,000 new units between 2025–2026 represents a major correction in Dubai’s rental dynamics. Tenants can expect increased choice and steadier prices, while landlords may need to adapt strategically to remain competitive.

At RentingProp.com, we’re tracking these changes closely—so you can make smarter rental decisions in a rapidly evolving market.