“Some tenants may reconsider the trade-off of long commutes,” said one expert. “If rents become more attractive, the value of being closer to work in Dubai becomes more compelling.”
Real estate executives say that increased supply is expected to bring down rents, even as commuters face growing traffic challenges.
Property Monitor data shows that a total of 648 projects were launched in 2025, adding over 167,000 units to the market. Analysts estimate that the emirate will continue to see a steady rise in supply over the coming years, fueled by both recently launched projects and new developments set to enter the market.
Tenants Who Left Dubai for Lower Rents May Return in 2026, Experts Predict
Dubai: A wave of new property supply and easing rent increases may prompt tenants who left Dubai in recent years to return, according to real estate experts.
“The wave of new supply expected from 2026 onwards will give tenants something they’ve lacked for a while: choice,” said Harrison Rackham-Beadle, sales director of haus & haus. “As handovers increase in popular communities such as JVC and Dubai Hills Estate, tenants will benefit from more options and gain bargaining power. In some cases, this could lead to more competitive pricing, with landlords needing to focus on quality, condition, and realistic rents rather than relying on scarcity.”
Who Will Relocate?
Rackham-Beadle noted that many tenants who moved to other emirates due to high rents may return as rent growth slows and some communities see lower rental rates.
“Many tenants possibly relocated for affordability rather than preference,” he said. “As rent increases potentially slow in Dubai, some may reconsider the trade-off of long commutes. If rents become more attractive, the value of being closer to work, amenities, and lifestyle in Dubai becomes more compelling.”
Affordable Unit Supply
Bhaskara Santosh Punuru, partner and development manager at Arthouse Hills Arjan, suggested that value-driven units priced between Dh1 million and Dh2 million could attract residents from Ajman and Sharjah back to Dubai.
“They want to move back and stay here… Once this supply enters the market, particularly studios and one- and two-bedroom units, many people will be motivated to return. If rentals remain reasonable, in two to three years there will be enough options for people to move back,” he said.
Quality Still Key
Rohit Bachani, co-founder of Merlin Real Estate, emphasized that the market is not facing a classic oversupply. “There is still a shortage of quality, end-user housing, especially in the mid-market apartment and townhouse segment. Much of the new supply is luxury-focused, investor-held, or not designed for how families and long-term tenants live. Developments offering practical layouts, community planning, nearby schools, parking, and everyday amenities continue to maintain high occupancy even during heavy handover cycles,” he said.
Market Outlook
Property data shows that 648 projects were launched in 2025, bringing over 167,000 units to the market, and experts expect this supply trend to continue in the coming years. Real estate executives say this increase in supply could ease rental pressure, even as commuters face growing traffic challenges, potentially prompting a partial return of tenants to Dubai.
