A 10 to 20 per cent decline in rental prices would be a positive and much-needed correction for Dubai’s property market after four years of sharp increases, according to Rizwan Sajan, founder and chairman of Danube Properties.
Speaking to Khaleej Times, Sajan predicted that a rental adjustment is likely in 2026, following a sustained post-pandemic surge in rental values. “A 10-20 per cent rental correction will help the market as rentals have gone very high. Dubai always benefits from global uncertainty, attracting investors — but prices and rents must remain sustainable,” he said.
Market indicators suggest that a broader easing in rental rates may already be underway. Growing competition among landlords, the influence of Dubai’s Smart Rental Index on older properties, and a surge in new housing supply are contributing to downward pressure on rents.
Industry data from Property Monitor shows that 7,848 units were delivered in the first quarter of 2025 alone. A total of 71,251 units are expected to be handed over by year-end, with 80,015 in 2026 and 58,766 projected for 2027.
“This substantial influx of supply over the medium term will be a key factor to watch, as it may influence both property prices and rental rates,” said real estate agency Betterhomes in its Q1 2025 market report.
Sajan added that while a rental correction could be on the horizon, developers who maintain high standards and offer strong amenities have little to worry about. “Prices might also see some correction, but quality developers will always attract buyers and tenants. We’re seeing growing interest from investors in North America, particularly the U.S. and Canada.”
Contractor Shortage Poses New Challenge
Despite strong demand, Sajan flagged a growing challenge in the form of a shortage of quality contractors. With the influx of both international and local developers, competition for reliable construction partners is intensifying.
“Finding a good contractor is more difficult than selling property today,” he said. “The number of developers has grown, but the pool of contractors hasn’t. There’s a real opportunity for contractors from Oman, Bahrain, Saudi Arabia, and India to enter the Dubai market.”
Danube Properties, one of Dubai’s top 10 developers, has launched 34 projects to date, with 18 completed and 16 under development. The company recently launched “Sparklz by Danube,” a 358-unit residential tower in Al Furjan.
Sajan encouraged foreign developers to bring their own contractors to Dubai, emphasizing the ease of doing business in the emirate. “Dubai is one of the easiest places in the world to set up and operate. The opportunity for growth here remains massive.”
