New and renewed rental contracts across Dubai’s freehold areas continued their upward trend in 2026, reflecting sustained demand and positive market activity, as the sector moves steadily toward setting a new all-time record by the end of the year.
A market analysis conducted by fäm Properties showed that 39,645 rental contracts were registered in Dubai’s freehold areas during August 2026, representing an increase of 3.79% compared with the previous month.
Strong Growth in New Rental Contracts
New rental contracts continued to post strong performance in August, rising 19.4% year over year to 20,611 contracts, while renewals increased 4.4% annually to 19,034 contracts.
These results brought the total number of rental contracts registered across freehold areas during the first eight months of 2026 to 257,284, an increase of 5.5% compared with the same period in 2025.
The performance follows a record year in 2025, when the market registered 377,944 rental contracts over the full year, strengthening expectations that activity will remain strong during the remaining months of 2026.
Warsan First Leads Dubai Areas
Warsan First ranked as Dubai’s leading freehold area for rental contracts since the beginning of 2026, recording a total of 23,894 contracts and maintaining a strong position among the emirate’s most active rental locations.
One-bedroom residential units accounted for a significant share of registered leases, with 105,880 contracts, representing around 41% of the total.
The figures highlight continued demand for practical residential units that suit a broad segment of residents, supported by the wide range of housing options available across Dubai’s freehold communities.
AED 28.6 Billion in Property Sales in August
Alongside the growth in the rental market, Dubai’s property sales market also remained active. Data from DXBinteract showed that 12,018 sales transactions worth a combined AED 28.6 billion were recorded during August.
Off-plan properties dominated the market in terms of transaction volume, with 8,359 deals valued at AED 16.3 billion, compared with 3,659 resale transactions worth AED 12.4 billion.
The figures underline the continued appeal of new property developments in Dubai, while the ready-property and resale segments also remained active.
Dubai South Maintains Its Lead
For the sixth consecutive month, Dubai South topped the list of the emirate’s best-performing areas by primary market sales volume.
The area recorded 1,908 off-plan transactions during August, with a total value of AED 2.3 billion, reinforcing its position among Dubai’s most attractive destinations for buyers and investors.
The performance comes amid continued urban expansion and a growing pipeline of new developments, both of which are supporting stronger real estate activity in the area.
Rental Market Reflects Dubai’s Appeal for Living and Working
Firas Al Msaddi, CEO of fäm Properties, said: “The rental market is an important indicator of how much people want to live and work in Dubai, regardless of the uncertainty that prevailed in the region during the past few months.”
He added: “The volume of new contracts partly reflects tenants’ tendency to take advantage of lower rents in some areas, which is natural under these circumstances.”
The rental figures highlight Dubai’s ability to maintain strong market activity, supported by the emirate’s appeal as a place to live and work, as well as the variety of property choices and different price levels available across individual communities.
Apartments Account for the Largest Share of Transactions
August saw the sale of 9,974 apartments with a combined value of AED 15.7 billion, giving apartments the largest share of property transactions recorded during the month.
The market also recorded the sale of 1,354 villas worth AED 7.9 billion, along with 183 land plots valued at AED 2.6 billion.
In the commercial sector, 420 transactions involving offices and retail units were recorded, with a total value of AED 1.5 billion, reflecting the diversity of activity across different real estate asset classes.
AED 110 Million for the Most Expensive Villa Sold in August
According to the company, the most expensive apartment sold during August was valued at AED 86 million at The Address Residences Jumeirah Gate – Tower 2.
The most expensive villa sold during the month was valued at AED 110 million at Signature Villas, highlighting the continued presence of high-value luxury transactions in the market.
Properties Below AED 2 Million Account for Most Sales
The data showed that properties priced below AED 1 million represented 42.8% of total sales, making up the largest share of transactions.
Properties priced between AED 1 million and AED 2 million followed with a 33.2% share, meaning that properties below AED 2 million together accounted for more than three-quarters of all sales.
Properties valued between AED 2 million and AED 3 million represented 10.9% of sales, while those priced between AED 3 million and AED 5 million accounted for 7.25%.
Properties valued above AED 5 million represented 5.7% of total sales.
