Investment Strategy
Tourism Growth and Holiday Home Investment
February 2, 2026
After rising strongly in 2013 and 2014, rents in Dubai are levelling off. New completions are increasing choice for tenants, and some landlords are adjusting rents to keep occupants. The rental market is becoming more balanced.
Where rents are flattening
- Areas with new supply: such as parts of JVC, Dubai Sports City and Business Bay.
- Older buildings: facing competition from new ones.
- Luxury segment: some softening in the highest rents.
Where rents are firm
Established family communities with limited new supply and well-managed buildings in central locations continue to see steady demand.
Advice for landlords
Landlords should price according to the market, maintain properties well and consider offering flexible payment terms. Retaining good tenants is valuable.
Advice for tenants
Tenants have more options and room to negotiate. They should compare properties, check the RERA rental index and ensure contracts are registered with Ejari.
Effects on yields
Flattening rents, combined with stable or easing prices, mean yields are broadly unchanged. Investors should calculate net yields realistically.
Rent-free periods and other incentives
In a softer rental market, landlords sometimes offer incentives instead of lowering the headline rent. Common examples include a rent-free month, accepting payment in more cheques, including maintenance or chiller charges, or furnishing the property. These can attract tenants while preserving the stated rent, which may matter for future valuations or renewals under the rental index. Tenants should compare offers on an effective annual cost basis, including all incentives. Landlords should consider which incentive offers the best value for the tenants they want to attract. A clear, written agreement covering all incentives avoids misunderstandings and disputes at renewal or when the tenancy ends.
Our view
A more balanced rental market benefits both tenants and responsible landlords. We help landlords set realistic rents and keep their properties competitive.
