Listings by landlords in Dubai's rental market have risen, while tenant demand has dropped in the month of March as the regional war enters its fifth week, according to a report.
Dubai-based brokerage betterhomes said it recorded a 23 per cent annual increase in rental listings in March this year, alongside a 16 per cent decline in tenant enquiries.
Lead volumes – referring to activity by renters or landlords – are currently about 30 per cent to 40 per cent below the same period last year, it said in a statement on Monday.
However, activity has improved since early March, with lead volumes rising by about 20 per cent week-on-week and briefly matching levels seen at the same time last year in mid-March.
Rental demand is currently concentrated in Dubai Marina, Business Bay, Dubai Silicon Oasis and JVC, which are seeing the strongest search volumes on property portals, the report said.
“We are seeing many of the same questions from both tenants and landlords, particularly around demand, pricing, and how the market is evolving,” said Rupert Simmonds, director of leasing at betterhomes.
“What matters now is stepping back from the noise and focusing on what the data is actually showing. The market remains active, but outcomes are increasingly shaped by realistic pricing, strong presentation, and a clear understanding of tenant behaviour.”
The UAE and Gulf states have been hit by attacks from Tehran in what it says is retaliation for strikes by the US and Israel, which began on February 28. However, business has continued in the Emirates, with the property market activity continuing.
A survey released last week by Redseer Consulting found that among the 39 per cent of respondents who had active plans to buy property in the UAE before the war, only 9 per cent have cancelled them. Meanwhile, 52 per cent have delayed the plans until the situation stabilises.
The report also found that 41 per cent expect an increase in rental rates in the next six months, compared with 27 per cent who expect a decrease.
While the current situation has affected sentiment, household finances and property decisions, “the picture is still more balanced than bearish,” said Sandeep Ganediwalla, partner at Redseer.
“Trust in the UAE system remains strong, many expect the disruption to be short-lived,” he said. “That suggests the first impact on property is likely to be slower decision-making and weaker transaction momentum, not necessarily a sharp repricing.”
