Rents are still rising, yet the pace is calmer than last year. Meanwhile, the Smart Rental Index anchors renewals to local benchmarks.
Therefore, investors can underwrite with confidence and focus on communities with deep tenant pools and fair service charges.
Dubai Rental Trends & Best Yields (H1 2025)
Clear, data-led insights into Dubai’s rental market and the communities delivering the strongest returns.
Rents are still rising, yet the pace is calmer than last year. Meanwhile, the Smart Rental Index anchors renewals to local benchmarks. Therefore, investors can underwrite with confidence and focus on communities with deep tenant pools and fair service charges.
Overall YoY
+7.2%
Apartments YoY
+7.6%
Villas YoY
+5.3%
Q/Q (Apt · Villa)
+1.2% · ~0%
Key Market Trends
Momentum has moderated; however, demand remains broad. In addition, the Smart Rental Index curbs outliers and creates clearer planning. Finally, the 2025–2029 pipeline should support gradual stabilisation rather than sudden swings.
Growth is cooler than 2023–24 peaks. Apartments still edge higher while villa rents look flatter q/q.
Deliveries in 2025–26 plus a larger pipeline improve balance and reduce extreme rent moves.
Renewal caps now track building/area levels, which limits shocks for tenants and landlords alike.
Affordable/mid hubs show the highest headline yields; a few prime pockets also screen surprisingly strong.
Best Rental Yields by Area
Figures below are gross. To estimate net, subtract service charges, realistic vacancy and leasing costs; net usually lands 1–2 p.p. lower.
For resilient occupancy, prioritise large tenant pools with improving infrastructure: International City, Dubai Investment Park, Discovery Gardens, Town Square and Al Furjan. Entry prices remain sensible; therefore, gross yields often sit between 8% and 10%.
Villa growth looks softer q/q. Consequently, use conservative rent assumptions and prefer family-led communities with schools and parks: JVC, DAMAC Hills 2 and Al Barari are reliable examples.
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