Dubai home rents slip 6.2% despite higher property prices

Dubai office rents rose 13% year on year, while Abu Dhabi office occupancy reached about 96%, reflecting continued demand and limited supply of premium commercial space.

CBRE said Dubai's residential market showed signs of moderation after several years of rapid growth. Average residential rents fell 6.2% from the previous quarter and were 2.6% lower than a year earlier, while home prices remained 1.9% above 2025 levels. Nearly 18,000 new homes were completed in the first half of the year, easing supply pressures.

Residential sales also slowed, with fewer than 37,000 transactions recorded in Dubai during the second quarter, down 29% year on year. The total transaction value declined to AED88 billion from AED154 billion a year earlier.

In contrast, Abu Dhabi's housing market continued to expand. Residential property values climbed 21.6% year on year, while sales reached AED32 billion, up 150% from the same period in 2025. Off-plan properties accounted for around 83% of transactions.

Industrial and logistics assets also remained strong, supported by manufacturing investment and supply chain expansion, while retail occupancy stayed high at approximately 98% in Dubai and 95% in Abu Dhabi.

CBRE expects the UAE economy to contract marginally by 0.04% in 2026 due to disruptions affecting trade, tourism and aviation.

"What remains particularly noteworthy is the speed and scale of the UAE's policy response, from supporting business continuity and trade flows to advancing economic partnerships and diversification initiatives," said Matthew Green, Head of Research at CBRE MENA.

He added: "Although near-term conditions are likely to remain challenging, the country's long-term growth trajectory remains supported by structural reforms, strategic investment and its position as a leading hub for trade, capital and talent."

Earlier, Qazinform News Agency reported that the Dubai Electricity and Water Authority (DEWA) ranked first in 13 key operational performance indicators, along with several leading regional benchmarks, highlighting that excellence in Dubai is measured by impact rather than scale alone.