Tenants in Dubai are continuing to renew their annual rental contracts, even as landlords impose rent hikes of 10% or more. Six months after Dubai’s updated Rental Index was introduced, lease renewals remain the most popular choice across the residential market.
According to leasing agencies and property platforms, many residents still see renewing as the more affordable option compared to moving into a new unit — despite a growing number of new apartments being added to the city’s housing supply.
The main reason for this trend is simple: renewals are often less costly overall. While rents have risen sharply, the upfront expenses and higher market rates attached to new leases are keeping many tenants from relocating.
This comes at a time when thousands of new homes are set to be delivered in the coming months. However, analysts believe rental prices have not yet reached a point of correction, so tenants continue to play it safe by staying put.
Whether the addition of more residential units will shift the balance toward new leases remains to be seen, but for now, renewals dominate Dubai’s rental landscape.
