Dubai Rental Market Poised for Record Year, Off-Plan Sales Dominate in October

Dubai's real estate sector demonstrated robust performance in October, with rental activity set to achieve a new annual record, according to a recent report by fäm Properties.

Rental Market Momentum

The report indicates that 44,841 rental contracts were registered in Dubai's freehold areas during October. New tenancy agreements increased by 3.8% year-on-year to reach 21,987, while renewals saw a slight uptick of 0.5% to 22,854.

Cumulatively, freehold rental registrations for the first ten months of the year stand at 339,557, marking a 6.8% increase compared to the same period last year. This trend suggests Dubai is on track to surpass the 2025 annual record of 377,976 contracts.

Al Warsan First emerged as the most active freehold rental location during the first ten months, recording 29,701 tenancy contracts. One-bedroom apartments accounted for the largest share of rental activity, representing 41% of the total with 138,836 contracts.

Sales Market Overview

DXBinteract data reveals that the sales market recorded 11,974 transactions valued at AED 35.01 billion in October. This represents an 18% month-on-month increase in value and a 5.4% rise in volume.

Off-plan purchases continued to drive market activity, comprising 7,609 transactions worth AED 19.2 billion. Resale transactions amounted to 4,289, valued at AED 15.6 billion.

Dubai South maintained its leadership for the eighth consecutive month in off-plan sales, registering 720 transactions valued at AED 894.6 million.

Property Types and Pricing

October sales included:

• 8,888 apartment sales worth AED 15.5 billion
• 1,356 villa sales worth AED 9.1 billion (a 62% MoM increase in volume)
• 449 plot sales valued at AED 5.9 billion (a 92.7% MoM increase)
• 649 townhouse sales at AED 2 billion (an 8% MoM increase)
• 540 commercial transactions (offices and shops) worth AED 2.3 billion

Properties priced below AED 2 million constituted almost two-thirds of October sales, with 30.6% priced below AED 1 million and 33.1% between AED 1 million and AED 2 million.

“The rental figures show that demand for homes in Dubai continues to hold up well, with new contracts and renewals both increasing year-on-year,” said Firas Al Msaddi, CEO of fäm Properties. “At the same time, the continued preference for off-plan purchases reflects buyers’ confidence in the market’s longer-term prospects.”

The most expensive apartment sold was for AED 58 million in Silena Building B, Dubai Islands, while the priciest villa reached AED 97 million in Eden Hills.