Dubai tenants switch homes as new leases offer rents up to 15pc lower
Prime districts record stronger switching as leasing activity remains resilient
DUBAI – Dubai’s rental market has recorded a notable summer shift, with hundreds of tenants changing homes as new leases offer significantly lower rents than renewals.
Analysis by fäm Properties of Dubai Land Department tenancy registrations shows that tenants are increasingly finding it financially attractive to move to comparable or better-quality apartments rather than extend existing contracts.
The change has emerged even as overall leasing activity remains broadly steady across the emirate.
Tenant shift
New leases exceeded renewals by 633 contracts in July and by 2,139 contracts in August, marking the first time this has happened in any month since the dataset began in January 2023. Renewals had outnumbered new leases for 36 consecutive months before the summer turnaround.
The shift has been particularly visible across mid-market and prime areas, where tenants have been able to secure lower rents by moving to another property rather than accepting the cost of renewing their existing tenancy.
According to fäm Properties, new-lease rents for the same building and unit type were 15.3% lower in August than in January, while renewal rents had fallen by about 1%.
The data shows that the trend was concentrated in several prominent Dubai districts. In August, new leases outnumbered renewals by 1,102 contracts in Al Barsha South Fourth, covering Jumeirah Village Circle, followed by 609 in Business Bay, 598 in Al Merkadh, 564 in Marsa Dubai, which includes Dubai Marina, and 342 in Downtown Dubai.
The pattern was different in some more affordable communities. Renewals continued to exceed new leases in Al Warsan First, covering International City, as well as Jabal Ali First in Jebel Ali and Nadd Hessa in Dubai Silicon Oasis.
Leasing activity
Despite the increase in tenant movement, overall leasing activity has remained relatively stable. New-lease contracts registered between January and August were 1% below the corresponding period in 2025. However, July recorded about 14,100 new leases and August around 15,600, with both months exceeding their respective figures from last year.
Renewals were also 1% lower than during the same period in 2025.
The median rent for new apartment leases stood at Dh94.6 per square foot in August, down 8.3% from the October 2025 peak of Dh103.1 per square foot.
The changing rental pattern has also affected the type of homes being leased. According to fäm Properties, contracts being signed are increasingly weighted towards better-quality and better-located properties, helping maintain the overall average of leased homes even as rents for individual apartments decline.
The agency said landlords who adjusted to changing market conditions continued to secure leases, while some tenants opted to move to take advantage of lower rents and other attractions in the market.