Dubai Sees 6.2% Drop in Rents Amid Rising Home Prices in Q2 2026

Summary:

In Q2 2026, Dubai experienced a 6.2% drop in average residential rents from the previous quarter, with rents down 2.6% year-on-year, according to CBRE. Despite this, home sales prices rose 1.9% annually, indicating market moderation. Residential transactions fell 29% to under 37,000, with total sales value down to Dh88 billion. Increased housing supply and softer demand contributed to this slowdown. Meanwhile, office rents surged by 13%, driven by high demand for prime spaces, while Abu Dhabi's residential market saw a 21.6% increase in property values, reflecting strong buyer interest.