The Dubai property market has been on a serious roll over the past few years—but a small shift may be on the horizon. According to Rizwan Sajan, Founder and Chairman of Danube Properties, a 10–20% drop in rental prices next year isn’t just expected—it’s actually healthy for the market.

“Rentals have gone very high,” Sajan shared in a recent interview with Khaleej Times. “A 10–20% correction will help bring balance. Investors are still coming in, but prices shouldn’t get out of hand.”

What’s Behind This Expected Drop in Rents?

Several factors are putting gentle downward pressure on Dubai’s rental market—and that might be good news for tenants and long-term investors:

• More competition among landlords: With new and older buildings vying for tenants, landlords are becoming more flexible on pricing.
• A flood of new units: Dubai handed over 7,848 new homes in Q1 2025 alone. By the end of the year, that number could reach over 71,000.
• A smarter rental index: Initiatives like the Smart Rental Index are starting to have an effect, especially on older properties.
• Global uncertainty: As international investors seek stability, Dubai continues to shine—but affordability needs to be part of the equation.

Developers Are Booming—But Contractors Are in Short Supply

Danube Properties is one of the top 10 developers in the UAE, and they’ve been busy—launching 34 projects and already delivering 18 of them. Their latest launch? Sparklz by Danube, a sleek 358-unit tower in Al Furjan.

But Sajan is sounding the alarm on a growing challenge: the shortage of quality contractors.

“Selling properties isn’t the hard part right now,” he said. “It’s finding the right contractors to build them.”

With so many developers entering the Dubai market, the demand for skilled construction partners has outpaced supply. Sajan believes there’s massive potential for contractors from countries like Oman, Bahrain, Saudi Arabia, and India to bring their expertise to Dubai.

Opportunity Knocks

Dubai remains one of the easiest cities in the world to set up a business, and that’s especially true in real estate and construction. Sajan encourages foreign developers to bring their trusted contractors along—and for construction firms to seriously consider expanding into the UAE.

So, What Does This Mean for You?

If you’re a renter, this could be your chance to find a better deal or upgrade your living space.
If you’re an investor, the slight dip in rental yields might actually be an entry point into a more balanced and sustainable market.
And if you’re in construction or development—the door to Dubai is wide open.