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Rental Rates Surge as Dubai Tenants Opt for Longer Leases in 2024

Rental Rates With an anticipated upward trajectory in rental prices, Dubai tenants are strategically embracing multiple-year leases, aiming to safeguard against rising costs in the coming years.

“Landlords’ Patient Stance in a High-Demand Market”

Industry experts observe landlords’ willingness to wait for favorable offers, capitalizing on the sustained demand for their properties amidst projections of rising rental rates in Dubai.

“Gradual Rise in Rental Rates Expected for 2024”

Projections suggest that rental rates in Dubai will continue to climb in 2024, albeit at a more measured pace, driven by robust demand from new tenants.

“Shifting Lease Duration Trends”

Leasing manager Jacob Bramley notes a growing trend of tenants and landlords opting for multi-year contracts, driven by the desire to lock in current prices amid the ongoing upward trajectory of rental costs.

“Renewals Drive Rental Contract Surge”

Property Finder’s data for Q3 2023 indicates a substantial increase in rental contracts, primarily fueled by a notable year-on-year rise of 11%, with renewals playing a significant role.

“Changing Dynamics in a Landlord-Favored Market”

In the current landlord-favored market, Bramley observes a shift in the approach of experienced landlords, with some waiting for optimal offers and others recognizing the increased value of their properties and becoming more open to securing higher rental prices through longer-term agreements.

“Flexible Payment Preferences Among Tenants”

Tenant preferences are evolving, with a growing inclination towards flexible payment terms. Bramley highlights the increasing popularity of tenants paying rent in multiple installments, signaling a departure from the traditional single-cheque payments.

“Shifting Tenant Preferences in Property Types”

Property Finder’s data reveals changing trends in tenant preferences, with previously overlooked areas gaining attention. The data underscores the diversity in tenant requirements, offering landlords the potential for higher returns, especially in the villa/townhouse segment.

“Influence of Community Decisions on Property Searches”

Community decisions are becoming increasingly influential, with factors such as green spaces, family-friendly environments, luxury developments, affordability, waterfront views, sports amenities, historic charm, and outdoor activities shaping tenant choices.

“Adapting to Evolving Demands: Key for Landlords”

Cherif Sleiman, Chief Revenue Officer at Property Finder, emphasizes the need for landlords to adapt to evolving tenant demands, positioning themselves to attract and retain tenants in the dynamic current rental market.

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