Listings by landlords in Dubai's rental market have risen, while tenant demand has dropped in March as the regional war enters its fifth week, according to a report.
Dubai-based brokerage Betterhomes said it has recorded a 23 per cent annual increase in rental listings for the month, alongside a 16 per cent decline in tenant enquiries.
The rise refers to Betterhomes’ own long-term rental listings and does not include Airbnb or other short-term rental inventory as a separate category, a company representative told The National.
“That said, part of the increase has come from short-term landlords moving their properties into the long-term rental market, as well as some owners choosing to rent out their property for now rather than sell.”
While supply has increased across the market, areas with a higher proportion of short-let apartments, such as Dubai Marina, Downtown Dubai and Business Bay, have seen more supply coming through from those channels, the representative added.
Lead volumes – referring to activity by renters or landlords – are about 30 per cent to 40 per cent below the same period last year, the company 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 last year's mid-March levels.
Rental demand is 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 Iran in what it says is retaliation for strikes by the US and Israel, which began on February 28. However, business in the Emirates, including property market activity, has continued.
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 rents in the next six months, compared with 27 per cent who expect a decrease.
The picture on rental values has been mixed rather than marketwide, according to Betterhomes.
“Some landlords have reduced rents, while others have held firm,” the representative said. “What we are seeing is that landlords who are pricing realistically and offering greater flexibility on contract terms are securing active tenants more quickly.
“Properties that represent clear value for money are continuing to attract attention from tenants looking for some relief on rent.”
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.”



