Rising tenancy contracts and property sales point to robust housing demand.
Dubai: Dubai’s rental market is showing strong growth in 2025. Data from the Dubai Land Department indicate that registered tenancy contracts increased by 6% in volume and 17% in value compared with last year, reaching 1.38 million contracts worth Dh126.4 billion. The rise reflects strong residential mobility, growing population inflows, and steady leasing activity across both residential and commercial sectors.
New tenancy agreements surpassed 513,000 contracts during the year, a 10% increase, underscoring continued demand from new residents entering the market. Renewals also rose 3% to over 514,000 contracts, reflecting stable occupancy and improving tenant retention.
The performance highlights a maturing rental market, supported by regulatory transparency and a diverse range of housing options. The sector continues to play a pivotal role in attracting talent and supporting Dubai’s long-term economic growth.
Development momentum continues
Construction activity remained robust throughout the year, reflecting confidence among developers and investors. The number of completed projects rose 7% to 124 developments, while the total value of completed projects increased 23% to Dh27.5 billion.
Meanwhile, projects under construction surged 25% to 937 developments, highlighting a strong pipeline of future supply. The ongoing pace of delivery underscores confidence in long-term demand, driven by population growth, job creation, and continued investor inflows.
Property transactions remain strong
The real estate market also saw robust activity, with the number of units sold rising 25% to 147,500 properties and the total transaction value increasing 30% to Dh280 billion. Growth was largely driven by higher-value homes, with villa sales values climbing even as volumes fell, indicating a continued shift toward premium real estate assets.
Brokerage and licensing activity surges
Real estate licensing saw a sharp increase, reflecting the sector’s overall growth. The number of registered real estate offices reached 4,122 during the year, more than doubling from the previous period and bringing the total number of active offices in Dubai to over 10,000.
A total of 14,364 real estate licences were issued across various activities. Brokerage services led the way, with more than 6,000 licences for sales brokerage and over 3,500 for leasing brokerage. Other licences covered transaction services, development activities, property supervision, and consultancy.
Authorities said the growth reflects increasing demand for professional services across the real estate value chain and underscores the strength of Dubai’s regulatory framework, which promotes transparency and bolsters investor confidence.
The sustained expansion of the rental sector aligns with Dubai’s long-term economic strategies, including initiatives to enhance quality of life and strengthen the city’s global competitiveness.
The steady rise in both new and renewed tenancy contracts points to a balanced market supported by strong regulation, a diversified housing supply, and ongoing population growth.
