Savills Reports Double-Digit Rent Declines in Dubai Marina, Business Bay, JVC in Q3 2026

Property consultancy Savills' Q3 2026 report indicates a softening in Dubai's real estate market, with significant year-on-year declines in apartment rents across several communities. The report also highlighted a slowdown in new property launches and a shift towards the ready-market segment in sales.

Apartment Rental Drops

Apartment rents in several popular Dubai communities experienced double-digit drops in the third quarter of 2026 compared to the previous year. The most notable declines were observed in:

• Dubai Marina: 12.8% fall
• Business Bay: 12.2% fall
• Jumeirah Village Circle ([JVC](/areas/jvc)): 10.4% fall

Other residential areas with significant year-on-year rent reductions included Al Furjan (7.5%), DIFC (7.3%), Majan (5.1%), Discovery Gardens (4.3%), and International City Phase 2 and 3 (0.4%). For villas and townhouses, Arabian Ranches 3 saw a 15% drop and Damac Lagoons fell by 13.4%.

Sales Market Performance

Dubai's sales market recorded 34,500 residential transactions in Q3 2026, marking a 4% decrease quarter-on-quarter and a 38% drop year-on-year. The total transacted value reached AED 70.8 billion, down 14% from Q2 and 46% from the previous year. This decline was primarily concentrated in the off-plan sector, where value fell to AED 45.7 billion. Conversely, the ready-market saw an increase in value to AED 25.1 billion, suggesting stronger buyer interest in completed properties.

Average apartment prices decreased by 4.8% quarter-on-quarter to AED 1,817 per sq ft, while villa and townhouse prices slipped 3.3% to AED 1,523 per sq ft.

Supply and Developer Activity

New property launches significantly slowed in Q3 2026, with only about 5,000 units introduced. This brings the total launches for the first nine months of the year to approximately 50,000 units, a 64% reduction compared to the same period in the previous year. Handover activity saw around 26,500 units delivered in the first half of 2026, predominantly apartments. Savills anticipates a further 50,000 to 60,000 units to be handed over in the second half of the year.

The market for sales transactions remained concentrated, with the top five developers accounting for 47.9% of deals. Azizi Developments led with 21%, followed by Emaar Properties (9%), Damac Properties and Binghatti (7% each), and Imtiaz (4%). The top five communities, led by Azizi Venice at 12%, made up 33.7% of all transactions.

Rachael Kennerley, Director of Research at Savills, noted that the market is currently in "a phase of rebalancing rather than a reversal," with lower launches and delayed completions expected to alleviate near-term supply pressures.