Renting in Dubai: Housing to Become More Affordable

Real estate experts believe that owners of older buildings will need to offer additional incentives to remain competitive.

Tenants in some older buildings in Dubai may have the opportunity to negotiate reduced rental rates with landlords as more new properties enter the market.

Арендаторы в некоторых старых зданиях Дубая получат возможность договариваться о снижении арендной платы с владельцами, так как на рынок поступает все больше новых объектов недвижимости.

Real estate market analysts suggest that owners of older properties will need to provide extra perks to maintain high occupancy rates. However, in some areas where significant new developments are expected in 2025, rental prices may decrease.

Trends for 2025

Experts predict that in 2025, tenants and landlords will increasingly agree on long-term contracts, payment through multiple cheques, and property upgrades to attract new renters. While rental prices are expected to keep rising, the pace will be slower compared to recent years.

According to Khaleej Times, rental prices in Dubai may see an average increase of 10% in 2025, which is already a moderate growth.

Stability in the Rental Market

Rupert Simmonds, Leasing Director at Betterhomes, noted that property owners have benefited from rising rents over the past few years. However, the rapid growth seen previously is unlikely to continue.

“Owners will aim to sign long-term contracts to ensure stable income. Tenants, weary of recent significant rent hikes, will prefer longer leases, which will provide stability for both parties and reduce turnover costs,” added Simmonds.

He also stated that the rental market is influenced by population growth, as many people move to Dubai due to its unique lifestyle, year-round sunshine, attractive opportunities, and financial benefits.

More Payment Cheques and Property Upgrades

Haider Tuaima, Director and Head of Real Estate Research at ValuStrat, observed that villa owners might need to offer tenants the option to pay rent through more cheques and upgrade their properties to make them more appealing.

“New tenants may have the chance to negotiate lower rents, while for existing tenants, increases in current contracts are unlikely,” he noted.

Ramji Iyer, Chairman and Managing Director at Acube Developments, added that property owners might become more flexible regarding payment terms and seek to attract tenants, particularly given the influx of new residents in Dubai.

Rental Reductions Possible in Select Areas

Although a significant drop in rental rates across Dubai in 2025 is unlikely, some areas like International City, Al Quoz, and Dubai Studio City may see stabilization or slight reductions due to an increase in new supply.

Simmonds also highlighted that in areas with substantial new developments, such as Jumeirah Village Triangle (JVT) and Dubai Land Residential Complex, owners may be forced to lower prices to remain competitive. Additionally, older buildings in traditionally popular neighborhoods like Bur Dubai and Deira may face pressure from modern residential complexes with enhanced amenities.

Yogesh Bulchandani, CEO of Sunrise Capital, mentioned that districts located far from central business areas or those catering to mid-income tenants may also experience a market slowdown due to an oversupply of new properties.