The Dubai Real Estate & Short-Let Market Report Q2 2025
This report shows off-plan launches outpacing handovers 5:1, a decline in long term rentals, and rising demand for short-let management. AirDXB, Dubai’s leading short-term rental property management company, helps investors achieve stronger returns.
Key Takeaways
- Properties available for sale on Property Monitor rose +2.07% Q-O-Q
- Properties listed for rent surged by a notable +13.67% Q-O-Q
- May to June 2025, sales volume dropped -19.75% and sales value dropped -13.76%
- Total rental contracts declined 6.3% year on year (Q2 2025 vs Q2 2024)
- New contracts dropped 8.9% year on year
- Renewals fell 4.8% year on year
- Total rental contracts fell 12.9% quarter on quarter (Q1 to Q2 2025)
- Renewals dropped 20.4% quarter on quarter
- New rental contracts rose 4.2% quarter on quarter
New Launches are Outpacing Handovers at a Rate of Nearly 5:1 in the First Half of 2025
In H1 2025, 81,672 new units were launched compared to 16,744 units handed over, resulting in a ratio of 4.88:1. This means that for every one unit handed over, nearly five new units are entering the market.
With 81,672 new launches and 16,744 units handed over, compared to 90,969 units sold in the first half of 2025, supply is steadily increasing. This growing inventory is leading to more properties remaining on platforms like Property Finder for longer periods.
Long-Term Rentals in The Red
Dubai’s long term rental market weakened noticeably in Q2 2025, with total rental contracts declining 6.3% year on year.
New contracts saw a sharper 8.9% drop, highlighting falling demand and affordability pressures. On a quarterly basis, rents plunged 12.9%, driven by a steep 20.4% decline in contract renewals.
The Dubai Short-Let Market: Occupancy AirDXB vs Market
As the leading short term rental property management company in Dubai, AirDXB continues to outperform the market, achieving 90% occupancy in Q2 2025 compared to the citywide average of just 63%. This cements its position among the best vacation rental management companies driving success in Dubai’s short-let management sector. (Source: AirDNA)
Explore the full report for an in-depth Arjan area guide, a comprehensive investor’s guide to short-term rentals, detailed analysis of Dubai’s active listing trends, property price movements segmented by type, insights into top performing areas, mortgage updates, and much more.
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