In response to a significant surge in rental demand, many landlords in Dubai are adopting more flexible payment terms for tenants and issuing fewer eviction notices, according to industry experts.
Lewis Allsopp, chairman of Allsopp & Allsopp, highlighted that demand is at an all-time high, with over 140,000 new residents arriving in the emirate within the first 11 months of 2024. Most of these newcomers are seeking rental homes. To foster transparency in the rental market, the Dubai Land Department has launched the Rera rental index, which informs both landlords and tenants about their rights regarding rent increases and eviction processes.
Trends in Rental Payments
Data from the third quarter of 2024 indicates a shift in tenant preferences, with most opting to pay rent in 6-8 cheques instead of the traditional single or two-cheque arrangements. This change reflects both the landlords’ willingness to accommodate tenants’ financial situations and the rising rental prices, which have reached near-record levels.
Real estate consultancy CBRE reports a consistent upward trend in rents, with average apartment rents increasing by 19% and average villa rents by 13% in the first nine months of 2024. The number of registered rental contracts has also risen year-on-year, primarily driven by a 14% increase in renewal contracts, although new registrations saw a slight decline.
Tenant Retention and Flexibility
Zhann Jochinke, COO of Property Monitor, noted that tenants are increasingly choosing to remain in their current properties, a trend supported by fewer eviction notices and the acceptance of more flexible payment plans. While traditional one-cheque payments can offer better rental deals, many tenants now prefer the flexibility of multiple cheques. It’s becoming common for landlords, particularly those with trusting relationships with tenants, to accept six or even twelve cheques.
Conclusion
As the rental market in Dubai continues to evolve, landlords are adjusting their strategies to accommodate the rising demand and changing preferences of tenants. By offering more flexible payment options and focusing on tenant retention, landlords are fostering a more stable and accessible rental environment, despite the challenges posed by increasing rents.
