Al Reem Island and Yas Island communities in Abu Dhabi, Al Taawun and Al Khan areas in Sharjah recorded the biggest drop in the UAE in the second quarter of 2026, dropping at a double-digit rate quarter-on-quarter.
In Abu Dhabi, one-bedroom units in Corniche and Al Raha Beach saw around an 8.4 per cent drop in rents
According to data shared by Property Finder, Reem and Yas islands saw a 13.3 per cent and 10.5 per cent drop in rentals during Q2 2026 as compared to Q1 2026.
In Abu Dhabi, one-bedroom units in Corniche and Al Raha Beach saw around an 8.4 per cent drop in rents. Al Khalidiya and Al Musaffah saw around a 5.6 per cent to 6 per cent drop in rentals quarter-on-quarter.
“In Abu Dhabi, we saw a clear softening in rental prices during H1, particularly across premium areas like Yas Island and Al Reem Island. 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,” said Cherif Sleiman, Chief Revenue Officer at Property Finder.
In Sharjah, the rental market presented a much more mixed picture, where prices depend heavily on the specific neighbourhood and property size.
One-bedroom apartments in Al Khan witnessed the biggest drop of 15.6 per cent as rents eased due to a slowdown in the economy amid regional military conflict.
Al Khan was followed by Al Taawun where rent fell by 11.8 per cent and Al Qasimia (-8.5 per cent). Rents in the other communities of the emirate remained steady during the April-June 2026 period.
“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,” he added.
“Should this neighbourhood-by-neighbourhood 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,” added Sleiman.
Ajman stood out as a hub for affordable housing in H1, driven by renters looking for better value.
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.
Ajman's rental market bucked the trend as rentals rose in almost all the communities led by Al Rashidiya (57 per cent), Al Nuaimiya (25.5 per cent) and Al Rawda (7.5 per cent).
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Waheed Abbas
Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that dir...