August 8, 2025 | Dubai, UAE: There’s some welcome news for tenants, a clear property price drop in Dubai is being seen across multiple areas this summer. Even in the city’s most in-demand affordable communities, rents on studios and one-bedroom apartments are finally showing signs of cooling down.

While experts expected a surge in demand following the crackdown on subletting and illegal partitions, so far, this hasn’t translated into higher rents. Instead, data points to price stability and in some places, even quiet declines.

Property Price Drop in Dubai Reaches Mid-Market Areas

The property price drop in Dubai is most noticeable in mid-income neighbourhoods like International City and Discovery Gardens, areas that traditionally attract long-term renters looking for budget-friendly homes.

In International City, studio apartments are now being listed between AED 28,000 and AED 29,000, while one-bedroom flats average around AED 48,000 to AED 55,000 annually. Agents say lower prices can still be found, especially for quick leases.

At Discovery Gardens, studio rentals range from AED 48,000 to AED 60,000, with one-bedroom units going as high as AED 105,000. However, recent data shows a price dip of around 1% over the last two months, subtle, but a sign of softening demand.

Rents Stay Flat Despite Increased Demand

One would expect that the recent restrictions on subletting and makeshift partitions would lead to rising prices, especially in the lower segment of the rental market. But according to agents and developers, the property price drop in Dubai is being sustained by larger market forces.

“There’s no clear evidence yet of rent increases due to the crackdown. Even with more people looking for studios or single-bedroom homes, price trends still follow the Dubai Rental Index and each building’s classification,” said Eima Hajimalan, Manager at GCP Properties.

This means that while demand is shifting, supply and policy controls are helping keep things stable or even slightly cheaper in many areas.

Why New Tenants Are Seeing Better Deals

The property price drop in Dubai is not limited to rentals. Even in the off-plan market, developers are adjusting their strategies. Despite headline prices staying high, many are quietly offering discounts, waiving fees, and pitching flexible payment plans to attract buyers.

“For those looking to sign a new rental contract, the last few months have offered good value. While renewal prices are still higher compared to last year, new contracts are more or less flat, especially in studio and 1BHK categories,” said Aakarshan Kathuria, CEO of RiseUp, a real estate agency.

For tenants making their first move or relocating within the city, this translates to a noticeable property price drop in Dubai, particularly in emerging residential zones.

Sub-Letting Crackdown Isn’t Causing Panic Yet

Dubai’s firm stance against subletting and overcrowded housing units was expected to increase market pressure. But the expected price spike hasn’t happened. Instead, it’s pushing tenants to explore other areas even outside city limits.

“There simply aren’t enough vacant units in the same locations for everyone displaced by the crackdown,” said one leasing agent. “So people are spreading out, moving to Deira, Al Nahda, Al Quoz, or even Sharjah.”

That diffusion of demand has helped ease the pressure, another reason why the property price drop in Dubai continues, despite market uncertainty.

Affordability Is Returning to the Market

While luxury villas in places like Palm Jumeirah may still carry premium rents, most other segments are seeing adjustments. Experts believe the market is finding a healthier balance, after hitting record highs in late 2024 and early 2025.

For renters, especially single professionals and small families, the property price drop in Dubai is making it easier to find homes without stretching their budgets. Developers and landlords are also becoming more competitive to attract long-term tenants.

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