UAE rents increase by over 50% in one emirate

Data shows rental markets in Abu Dhabi, Sharjah and Ajman moved in different directions during H1 2026 with affordability and new supply shaping prices.

Apartment rents in Ajman rose by more than 50 per cent in some areas during the first half of 2026 while Abu Dhabi recorded price declines across several premium communities.

Studio rents in Al Rashidiya, Ajman, recorded the sharpest increase among the areas tracked, rising 57.1 per cent from AED21,000 in Q1 to AED33,000 in Q2.

Al Nuaimiya also saw a 25.5 per cent rise in studio rents, from AED22,000 to AED27,600, as demand for affordable housing continued to support pricing in centrally located Ajman districts.

Abu Dhabi moved in the opposite direction with rental declines across Yas Island, Al Reem Island, the Corniche Area and Al Khalidiya, according to data from Property Finder.

Sharjah showed a more mixed market, with some areas recording declines while commuter locations such as Al Nahda and Al Qasimia remained steady or posted modest increases.

Cherif Sleiman, Chief Revenue Officer at Property Finder said, “The first half of 2026 showed that the rental market is moving at different speeds across the emirates, shifting away from overall growth toward localized, price-sensitive trends.”

Ajman rents rise on affordability demand

Ajman recorded the strongest rental growth in the data, led by studios in Al Rashidiya and Al Nuaimiya.

In Al Rashidiya, average studio rents increased from AED21,000 in Q1 to AED33,000 in Q2, while Al Nuaimiya rose from AED22,000 to AED27,600.

Al Rawda studios rose 4.8 per cent to AED22,000, while Al Jurf remained unchanged at AED25,000.

The increase was less pronounced for larger apartments. One-bedroom rents in Al Nuaimiya rose 6.7 per cent to AED32,000, while Al Jurf increased 3.1 per cent to AED33,000. Al Rashidiya rose 0.9 per cent to AED44,400 and Al Rawda was unchanged at AED32,000.

Two-bedroom rents in Al Rawda rose 7.5 per cent to AED43,000. Al Rashidiya increased 1.8 per cent to AED56,000 and Al Nuaimiya rose 2.2 per cent to AED42,939. Al Jurf fell 2.3 per cent to AED42,000.

“Meanwhile, Ajman stood out as a hub for affordable housing in H1, driven by renters looking for better value,” Sleiman said.

“This demand caused sharp, double-digit rental spikes for studios in centrally located districts like Al Rashidiya and Al Nuaimiya, even though prices for larger one- and two-bedroom apartments remained mostly flat with minor upward and downward spikes, particularly in the 2-bedroom segment.

“If this current trajectory stays on course for the rest of the year, these rapid price jumps in the studio segment will naturally begin to level off as they hit affordability ceilings, while Ajman overall will continue to serve as a steady, budget-friendly option for renters in the Northern Emirates.”

Abu Dhabi rents fall in premium communities

Abu Dhabi recorded broad rental declines between Q1 and Q2, particularly across premium communities.

Studio rents on Al Reem Island fell 13.3 per cent from AED75,000 to AED65,000. Yas Island dropped 10.5 per cent from AED94,999 to AED85,000, while Al Khalidiya declined 8.3 per cent to AED49,499.50.

The Corniche Area recorded a 6.3 per cent fall in studio rents to AED75,000. Al Raha Beach remained unchanged at AED95,000.

One-bedroom rents also declined across all Abu Dhabi areas tracked. The Corniche Area fell 8.4 per cent to AED114,999, Al Raha Beach dropped 8.3 per cent to AED110,000 and Al Reem Island declined 6.3 per cent to AED90,000.

Yas Island one-bedroom rents fell 4.4 per cent to AED110,000, while Al Khalidiya dropped 5.6 per cent to AED85,000. Al Musaffah declined 6 per cent to AED55,000.

Two-bedroom rents on Yas Island fell 10 per cent from AED194,495 to AED175,000. The Corniche Area dropped 6.3 per cent to AED150,000, Al Khalidiya declined 5.6 per cent to AED120,000 and Al Reem Island slipped 3.9 per cent to AED125,000.

Al Raha Beach was almost unchanged at AED149,999, while Al Musaffah held steady at AED70,000.

“In Abu Dhabi, we saw a clear softening in rental prices during H1, particularly across premium areas like Yas Island and Al Reem Island,” Sleiman said.

“In these locations, rents adjusted downward by single and double digits from Q1 to Q2 as a wave of new supply gave tenants more options. Meanwhile, mainland districts like Al Musaffah held completely steady, showing that affordable areas are resisting these price drops.

“If this trend continues into the second half of the year, we can expect the Abu Dhabi market to remain a price-sensitive one.”

Sharjah rents vary by area and unit size

Sharjah recorded a divided rental performance in H1, with price movements varying by neighbourhood and apartment size.

In the studio segment, Al Taawun recorded the steepest fall, down 11.8 per cent from AED34,000 to AED29,995. Al Qasimia fell 8.5 per cent to AED22,888.

Al Nahda rose 3.1 per cent to AED33,000, while Muwaileh remained unchanged at AED22,000. Muwaileh Commercial was broadly flat at AED37,999.

One-bedroom rents in Al Khan fell 15.6 per cent from AED54,000 to AED45,600, the steepest decline in Sharjah’s data. Al Taawun dropped 2.4 per cent to AED41,000.

Al Qasimia rose 3.1 per cent to AED33,000. Al Majaz, Al Nahda, Muwaileh and Muwaileh Commercial were broadly unchanged.

Two-bedroom rents were more stable. Al Majaz and Muwaileh each rose 1.9 per cent, reaching AED53,000. Muwaileh Commercial increased 1.6 per cent to AED65,000.

Al Khan remained unchanged at AED63,000, Al Qasimia was flat at AED39,000 and Al Nahda was almost unchanged at AED47,999.

“Sharjah presented a much more mixed picture, where rental movements depend heavily on the specific neighborhood and property size,” Sleiman said.

“While waterfront areas like Al Khan experienced downward pressure and price drops for smaller units, established commuter hubs such as Al Nahda and Al Qasimia posted steady, modest price increases due to ongoing demand from professionals.

“Should this neighborhood-by-neighborhood division continue to define the market through H2, we can expect to see premium communities face ongoing rental softeners, while affordable, well-connected areas maintain their current demand and hold completely stable pricing.”

UAE rental outlook for H2 2026

Ajman’s studio market recorded the strongest gains as renters continued to seek lower-cost options, although Property Finder expects rapid increases in that segment to moderate if affordability limits are reached.

Abu Dhabi is expected to remain price-sensitive in H2 if new supply continues to give tenants more choice, particularly in premium areas.

Sharjah’s performance is likely to remain split by location, with affordable and well-connected neighbourhoods holding firmer than some premium or waterfront areas.