Dubai's freehold areas recorded 257,284 rental contracts in the first eight months of 2026, putting the market on course for another strong year as new leases rise and one-bedroom homes remain the most popular choice.
September 11, 2026 | Palak Kataria | UAE | Real Estate | 3 Min Read
Image Courtesy: fäm Properties
Dubai's rental market is maintaining its momentum in 2026, with the number of tenancy contracts across the emirate's freehold communities continuing to rise as both new leases and renewals support activity.
A market analysis from fäm Properties shows 39,645 rental contracts were registered across Dubai's freehold areas in August, representing a 3.79% increase from the previous month. New contracts reached 20,611, up 19.4% year-on-year, while 19,034 renewals were registered, an increase of 4.4%.
That brought the total for the first eight months of 2026 to 257,284 rental contracts, 5.5% higher than the corresponding period in 2025. Last year ultimately produced a full-year record of 377,944 registered contracts.
The numbers keep Dubai's freehold rental market on a strong trajectory heading into the final months of the year.
The composition of those contracts also provides a useful indication of what tenants are choosing.
One-bedroom homes accounted for 105,880 contracts, or 41% of all freehold rental agreements registered during the first eight months. Two-bedroom properties represented another 23%, while studios accounted for 22%. Three-bedroom and four-bedroom homes represented 10% and 3%, respectively.
The figures underline the central role apartments continue to play within Dubai's rental market, particularly among residents seeking smaller and more accessible configurations.
Geographically, Al Warsan First recorded the largest number of freehold tenancy contracts during the period at 23,894. Jebel Ali First followed with 21,687, while Al Barsha South Fourth registered 20,607 contracts. Business Bay recorded 16,637.
The spread of activity across established and developing communities illustrates how rental demand is being distributed across different parts of Dubai rather than concentrated exclusively in its traditional central districts.
Rental activity was accompanied by another active month for property sales.
Data from DXBinteract cited in the analysis shows Dubai recorded 12,018 sales transactions worth AED28.6 billion in August. Off-plan properties represented the majority, with 8,359 transactions valued at AED16.3 billion, compared with 3,659 resale transactions worth AED12.4 billion.
Apartments accounted for 9,974 transactions worth AED15.7 billion, while 1,354 villa sales generated AED7.9 billion. The month also included 183 plot transactions valued at AED2.6 billion and 420 commercial property deals worth AED1.5 billion.
The distribution of transaction values shows activity across a broad range of price points. Properties priced below AED1 million represented 42.8% of sales, while another 33.2% fell between AED1 million and AED2 million.
Within the primary market, Dubai South ranked as Dubai's leading area by off-plan sales volume for the sixth consecutive month.
The district recorded 1,908 off-plan transactions worth AED2.3 billion in August. Wadi Al Safa 4 followed with 863 transactions worth AED839 million, while Jebel Ali recorded 644 transactions valued at AED674.1 million.
The continued performance of Dubai South adds another dimension to the wider market picture. While established freehold communities are generating substantial rental activity, developing districts are attracting significant primary-market sales.
Together, the figures show activity at different stages of Dubai's residential cycle: buyers purchasing future supply through the off-plan market, existing properties changing hands through resale transactions and a growing number of residents signing or renewing tenancy agreements.
For the rental market specifically, the first eight months have already moved ahead of the same period last year. With 257,284 contracts recorded through August, the remaining months of 2026 will determine whether Dubai's freehold communities move beyond the record set in 2025.
Source: fäm Properties; DXBinteract; Dubai freehold rental market analysis.
