Dubai’s Property Market Defies the Summer Slowdown with Surge in Rental Activity
Dubai, UAE, Wednesday 6th August - While summer is typically seen as a quieter period for property markets, Dubai continues to challenge that perception, with July delivering a strong performance across both sales and lettings, particularly within the rental market.
According to the Dubai Land Department (DLD), the total value of property sales transactions in July reached AED 51.67 billion, representing a 17% increase compared to June 2025. The volume of transactions across residential and commercial sectors also rose significantly, increasing by 21% month-on-month and 26% year-on-year. This reflects sustained confidence from both investors and end-users, despite the traditionally quieter summer period.
The summer months have brought a new wave of families arriving to Dubai ahead of the academic year. A 6% increase in private school student enrollment for the 2024-2025 school year has already been recorded, and with five new schools set to open in 2025, the demand for family-friendly villas and townhouses continues to grow. This influx of new residents is also directly fueling the demand for larger homes as families seek to settle in, making the rental market exceptionally active even during the traditionally slower summer months.
This surge in demand has resulted in a sharp uplift in rental activity with the DLD reporting an 12% increase in new rental contracts compared to June, with villa and townhouse rental volume rising by 8%. Allsopp & Allsopp observed even stronger figures, recording of 26% increase in villa and townhouse rental volume and a 33% year-on-year rise in the average price of these properties. This data reinforces the idea that more families are arriving to Dubai and opting to rent a villa or townhouse before purchasing.
Apartments have also experienced a notable boost, with rental volumes increasing by 37% month-on-month, likely due to an influx of professionals such as teachers, hospitality workers and corporate employees moving to the city ahead of September.
We know the perception is that the Dubai real estate market slows down in the summer, with so many people away on holiday, but the reality is just the opposite" says Lewis Allsopp, Chairman at Allsopp & Allsopp. "This July has been one of our strongest months yet, and the reason is simple - this is prime time for people relocating, starting new jobs, or getting their children settled in school. The sheer volume of activity, especially in the lettings market, just goes to show the immense global appeal Dubai has as a place to live and work.
Allsopp & Allsopp lettings team has experienced a 21% increase in new listings, a 14% rise in client registrations, and a 24% surge in viewings during July, underlining the strength of the market even during what is typically considered a seasonal lull.
In terms of rental distribution, villas and townhouses made up 33% of the total rental transactions in terms of volume, while apartments accounted for 67%. However, villas and townhouses took the lead in terms of value, representing 58% of the total rental market share, compared to 42% for apartments. This further highlights the growing premium placed on space and lifestyle by incoming residents. Dubai’s ongoing transformation into a family-oriented, globally attractive destination, driven by its infrastructure, education options and high quality of life, is continuing to fuel demand, even through the summer months.
About Allsopp & Allsopp
Allsopp & Allsopp is Dubai’s highest-awarded independent real estate agency. Founded in 2008 by Lewis Allsopp (Chairman) and Carl Allsopp (CEO), the company is recognised for its innovative, transparent approach to real estate, using data-driven tools and expert insights to help clients make informed property decisions.
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