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Dubai’s luxury villa rental market recorded significant value growth during the first five months of 2026, driven by increasing activity in higher-priced rental segments despite stable transaction volumes. According to an analysis by fäm Properties based on DXBinteract data, the annualised value of new villa tenancy contracts above AED1 million reached AED509 million between January and May, while renewals climbed to AED114 million. Palm Jumeirah remained the leading luxury villa rental destination, accounting for the highest volume and value of premium rental transactions. Growth was particularly evident in the AED2–3 million rental bracket, while several ultra-luxury leases exceeding AED5 million were also recorded, reflecting continued demand for high-end residential properties across Dubai’s established villa communities.
Dubai’s luxury villa rental market registered strong growth in value during the first five months of the year, with demand increasingly concentrated in higher rental brackets and Palm Jumeirah maintaining its position as the city’s leading premium residential leasing destination.
A market analysis released by fäm Properties showed that the annualised value of new villa tenancy contracts above AED1 million rose to AED509 million between January and May 2026, representing a 27% increase from AED400 million recorded during the corresponding period last year. The study also found that the annualised value of renewed tenancy agreements within the same price category increased by 28% to AED114 million from AED89 million.
According to data compiled by DXBinteract, overall transaction volumes in the luxury villa rental segment remained relatively stable. However, a larger share of activity shifted towards higher-value contracts, resulting in a substantial increase in overall rental value.
The trend was most apparent in the AED2–3 million annual rental bracket, where the number of new tenancy agreements increased by 21%, while renewal contracts rose by 17% compared with the previous year. The market also witnessed continued activity at the ultra-luxury end, with nine new annual villa tenancy contracts signed within the AED5–10 million category and a further seven agreements exceeding AED10 million annually.
The analysis showed that long-term leasing continued to dominate the market, with 67.3% of all villa rental contracts signed between January and May being structured as 12-month agreements.
Palm Jumeirah recorded the highest number of both new and renewed villa rental contracts above AED1 million among all villa communities in Dubai. The annualised value of new contracts in the area reached AED113 million during the first five months of the year, compared with AED99 million during the same period in 2025, representing an increase of 14%. The value of renewed contracts also rose to AED37 million from AED32 million, reflecting year-on-year growth of 15%.
The strongest increase in new contract values was reported at Dubai Hills Estate, where annualised rental value climbed 37% to AED87 million from AED63 million a year earlier.
Palm Jumeirah also led in terms of transaction volume, recording 36 new villa rental contracts above AED1 million. Dubai Hills Estate followed closely with 35 transactions, while District One, Mohammed Bin Rashid City registered 22 new agreements. Palm Jumeirah additionally recorded the highest number of renewed premium villa leases, with 16 contracts during the period.
Firas Al Msaddi, chief executive officer of fäm Properties, indicated that demand within Dubai’s luxury and ultra-luxury rental segments had remained resilient in recent months. He noted that high-net-worth tenants continued to choose Dubai as a residential destination and were increasingly willing to commit to higher rental values, reflecting sustained confidence in the market.
Across the leading villa communities, new agreements accounted for the majority of premium rental activity, representing 69% of contracts in Palm Jumeirah, 85% in Dubai Hills Estate and 63% in District One, Mohammed Bin Rashid City.
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