- Dubai rents surge due to higher rates; landlords negotiate lower prices.
- Dubai’s rent increase in the final four months relieves the growing population.
- Mid-market rental growth slows due to projects, summer vacations, and lock-ins.
With new lease agreements and renewals at higher rent rates, the surge in residential rents in Dubai has peaked. However, many landlords are now willing to negotiate a rental agreement at a cheaper price because they are not getting their asking rates.
Recent rental agreements, as well as throughout communities and well-liked residential areas in Dubai, are beginning to reflect this tendency.
Dubai’s housing rents
After three years of rapid rise, Dubai’s rents are beginning to normalize but not cool off if the pattern continues through the final four months of 2023. For Dubai’s expanding resident population, who has had to pay between 10% and 30% more in rent than they would have in 2019–20, this nevertheless constitutes relief.
The discrepancy between listing (rental pricing) and actual (actual) contracted rates, as documented by the Dubai Land Department, is one indication that rental trends may have peaked, according to Asteco, a property services company.
Despite not being advertised as such, apartment and villa properties frequently rent at the lower end of the asking price. This indicates that landlords are being realistic about what they should anticipate.
There hasn’t been any rental growth in areas with a lot of new supply, like Meydan, the Arabian Ranches 3, and Al Furjan.
With additional projects being turned over in places like Jumeirah Village Circle and Dubai South, rental growth in mid-market regions in the city is also slowing down.
Before their summer vacations, many renters locked in their rent renewals or leases, which will soon be reflected in market trends.
