What's Driving Dubai Tenants to Renew Leases Despite Rising Rents
Dubai tenant Salim Ahmed faced a hefty rent increase but decided against moving due to the costs involved.
Increasing numbers of tenants are choosing to renew their existing contracts rather than seek new ones in the face of rent hikes.
From January to August 2023, 376,211 rental transactions were registered, an 8.7% increase compared to the previous year. Renewed registrations grew by 28%, while new rental contracts dropped by around 12%.
Relocation costs often equal or surpass the rent increase, making tenants think twice about moving.
Dubai's affordable apartment rents have risen by up to 17%, and luxury apartments by as much as 32%. Affordable villa rents in popular neighborhoods increased by up to 50%, with luxury villas seeing hikes of up to 70%.
Average rents in Dubai have increased by 21.7% in the year to August 2023, slightly down from 22% in July.
CBRE Middle East reports that while demand remains strong, the rate of rental growth has been moderating over the past seven months.
By: Vibha Kapoor
Comments