Dubai Tenants Move Homes as New Lease Rents Decline by Up to 15%

Dubai tenants increasingly opted for new rental contracts in July and August as lower asking rents created more affordable alternatives across several major apartment communities.

Data from Dubai Land Department (DLD) tenancy registrations analysed by fäm Properties showed that new leases surpassed renewals by 633 contracts in July. The difference increased to 2,139 contracts in August.

July marked the first month since the dataset began in January 2023 in which new leases exceeded renewals. Prior to this, renewals had remained ahead of new contracts for 36 consecutive months.

The shift was particularly evident across mid-market and prime residential areas, according to fäm Properties. Tenants were able to secure comparable apartments at rents up to 15.3 per cent lower than January levels for the same building and unit type. By comparison, renewal rents declined by around 1 per cent over the same period.

New leases increase across major Dubai districts

Jumeirah Village Circle recorded the widest gap between new rental contracts and renewals in August, based on DXBinteract data.

Al Barsha South Fourth, which includes Jumeirah Village Circle, recorded 1,102 more new leases than renewals during the month.

Business Bay followed with a gap of 609 contracts. Al Merkadh recorded 598 more new leases, while Marsa Dubai, which includes Dubai Marina, posted a difference of 564. Downtown Dubai recorded 342 more new contracts than renewals.

Firas Al Msaddi, Founder and CEO of fäm Properties, attributed the change in tenant behaviour to the growing difference between renewal and relocation costs.

“Previously, it was in the interests of tenants to stay where they were, especially as moving home can be challenging in various ways. But that has all changed because tenants can now move to a comparable apartment for less than a renewal would cost.”

Tenant patterns remained different in more affordable residential areas. Al Warsan First, which covers International City, continued to record more renewals than new leases. Jabal Ali First, covering Jebel Ali, and Nadd Hessa, which includes Dubai Silicon Oasis, showed a similar trend.