REPORT: Dubai Rents Dip 21% In The Third Quarter of 2023

Dubai’s Prime Residential Rents Drop 21% In The Third Quarter of 2023

This article has been edited.

Whether you’re a newbie in Dubai, a longtime resident, or simply curious about the city’s rental scene, here’s the scoop: Rents in Dubai dipped by 21% during the third quarter of 2023…

EDIT: Allsopp & Allsopp added this clarification on rental prices decreasing. “The average price for a rental contract has dipped because there was an increased number of Allsopp & Allsopp rental contracts in suburban locations (higher number of contacts at lower annual prices) vs prime locations (lower number of contracts at higher annual prices).”


This year, in Q3, Dubai’s summer experience has been unlike any other…

According to Allsopp & Allsopp’s Dubai Real Estate Market Snapshot report for Q3 2023, prices decreased by 17% when compared to Q2, with notable drops of 24% for villas, 15% for townhouses, and apartments.

The top-performing neighbourhoods in Dubai:

  1. Business Bay – Average rent: AED 108,757
  2. Downtown Dubai – Average rent: AED 176,274
  3. Dubai Marina – Average rent: AED 135,182
  4. Jumeirah Lakes Towers (JLT) – Average rent: 101,464
  5. Motor city – Average rent: AED 86,033

Moreover, the TOP 5 buyer nationalities were:

  1. British – 22%
  2. Indian – 12%
  3. Italian – 5%
  4. French – 4%
  5. Lebanese – 4%

In the top 5 tenant nationalities, British nationals comprised 23%, followed by Russians at 9%, Indians at 8%, French at 5%, and Egyptians at 5%.

Taking all these factors into account, the busy summer yielded impressive results, with a total sales figure of AED 92.6 billion, reflecting a 6% increase in value when compared to Q2 2023. Furthermore, when compared to Q3 in 2022, there was a remarkable 38% surge in the value of properties sold. Transaction volume also followed this upward trend, experiencing a 3% increase from Q2 2023 and a substantial 21% surge from Q3 2022.

Furthermore, in the apartment category, there was a significant 25% growth in comparison to Q2 2023, and a remarkable 38% increase when contrasted with Q3 2023. In the villa and townhouse segment, the rental volume saw a 13% increase compared to the previous quarter and an impressive 56% surge when compared to Q3 2022.

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