Dubai’s property market demonstrates remarkable resilience despite ongoing geopolitical challenges. Recent data shows a 1.9% increase in rental activities compared to the previous year. According to a report by fäm Properties, over 214,445 tenancy agreements were formalized in the first seven months of 2026.

Strong Rental Market Activity

In July, which marked a period of stability in the Middle East, Dubai recorded the registration of 38,197 rental contracts. This impressive figure includes 18,431 new agreements and 19,766 lease renewals. The data highlights the ongoing demand for rental properties in the city, confirming its status as an attractive destination for both residents and investors.

Among the various property types, one-bedroom apartments remain the most popular choice, accounting for 41% of total agreements this year, equivalent to approximately 88,327 contracts. Following closely are two-bedroom units, representing 23% of the market, while three-bedroom apartments make up 10%. This trend underscores the growing preference for smaller living spaces, reflecting the lifestyle choices of many residents.

High Demand Areas

Several neighborhoods have emerged as hotspots for rental activity in Dubai. Al Warsan leads with 20,830 contracts registered so far this year, followed by Jebel Ali First with 18,478 contracts. Al Barsha South Fourth also shows significant activity with 16,489 agreements. Business Bay and Nadd Hessa round out the top five areas with 13,728 and 11,710 contracts, respectively. This distribution of demand highlights the diverse options available to renters, catering to various lifestyles and preferences.

Active Sales Market

The sales market in Dubai also maintained robust activity during July, with 13,872 transactions amounting to AED 34.5 billion. A significant portion of this activity was driven by off-plan transactions, which accounted for 9,585 deals valued at AED 20.5 billion. In contrast, resale transactions totaled 4,287, with a combined value of AED 14 billion. This dynamic shows not only strong investor interest but also an encouraging outlook for future property development in the region.

Firas Al Msaddi, CEO of fäm Properties, emphasized that the rental activity serves as a positive indicator of market resilience. The substantial volume of renewals signals that, despite regional uncertainties, individuals still regard Dubai as a premier place to live and work. The ongoing migration trends and job opportunities further support this sentiment.

New Room-Sharing Regulations

In a move to regulate the rental landscape, the Dubai government has introduced new legislation addressing shared housing practices, set to take effect on August 26. This law stipulates that renters who wish to rent out rooms or shared spaces must obtain proper authorization from their landlords. A significant aspect of the law emphasizes that renters cannot lease out a portion of their living space without the landlord’s written consent. This regulation aims to ensure transparency and protect the rights of both tenants and property owners, thereby contributing to a more organized rental market.

In summary, Dubai’s property market continues to thrive, aided by strong rental activities and an active sales sector. The new regulations may also contribute to a more structured environment, further enhancing the appeal of Dubai as a desirable investment destination.