New Completions Start to Change the Rental Equation in Dubai

Recent findings from Colliers show that the market is becoming more segmented, with a clear split between older, supply-tight communities and newer areas seeing a wave of handovers. In recently completed developments, landlords are adjusting prices to stay competitive, which is gradually closing the premium that new leases used to command over renewals. While average annual rents still showed a modest 4% rise year-on-year in Q3, quarter-on-quarter figures dropped by 15%, signalling a slowdown after several years of aggressive growth.

Behind these shifts is a sizeable amount of new supply. In the third quarter alone, approximately 8,100 apartments and 1,650 villas were delivered. October was particularly strong: Property Monitor recorded 65 project launches bringing more than 14,000 units to market, valued at around Dh33.5 billion. In total, the first ten months of 2025 saw 532 project launches with nearly 131,500 units added – a level that would typically represent an entire year’s worth of activity.

This expansion reflects a broader participation on the developer side, with 228 companies launching projects this year compared with 163 in the same period last year. Many landlords are  upgrading interiors, adding furnishings, or modernising layouts to meet rising tenant expectations. Colliers notes that these improvements are helping some owners secure higher rents, especially for move-in-ready units that offer modern finishes and layouts. Still, tenants are becoming more price-aware, carefully weighing the cost of moving against moderate renewal increases.